Bulletin n. 3/2006 | ||
December 2006 | ||
Thornton John |
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Fiscal decentralization and economic growth reconsidered | ||
in Journal of Urban Economics , Volume 61, Issue 1 , 2007 , 64-70 | ||
Recent studies examining the relation between fiscal decentralization and economic growth have failed to take account of the extent of the independent taxing powers available to sub-national governments and thus have substantially overstated the degree of effective decentralization. Results from a cross section study of 19 OECD member countries suggest that when the measure of fiscal decentralization is limited to the revenues over which sub-national governments have full autonomy, its impact on economic growth is not statistically significant. | ||