Bulletin n. 1/2005
December 2005
CONTENTS
  • Section A) The theory and practise of the federal states and multi-level systems of government
  • Section B) Global governance and international organizations
  • Section C) Regional integration processes
  • Section D) Federalism as a political idea
    • Letelier S. Leonardo
    Explaining Fiscal Decentralization
    in Public Finance Review , Vol. 33, No. 2 ,  2005 ,  155-183
    This study uses a panel of sixty-four countries to test empirically various hypotheses about the causes of decentralization at the government level and in different functional spending areas. The empirical results find a negative impact of urbanization on decentralization. In the general case, a higher income per capita favors decentralization, with this effect being stronger for high-income countries. However, the use of functional measurements of decentralization shows that income per capita has a negative effect on health decentralization. Urbanization has a negative impact on the fiscal decentralization of health and education, and it has a positive effect on the share of housing expenditures being made by subnational governments.
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