Bullettin n. 1/2011 | ||
June 2011 | ||
Quentin Frère, Benoît Le Maux |
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Impact de la décentralisation sur la taille du secteur public : le cas de la France | ||
in Revue d'Economie Politique , 3 (Vol. 120) , 2010 | ||
Impact of decentralization on the size of government: the case of France This article makes an attempt to evaluate the impact of the French fiscal decentralization on total public expenditure level. We estimate the econometric model initiated by Oates [1972] on the 1960-2006 period, taking into account the various factors explaining government size (Wagner’s law, weaker economic growth, etc.). Our estimations results highlight three phenomena : (1) expenditure decentralization is associated with a smaller public sector ; (2) the 80’s transfer of responsibilities attenuated the negative effect of expenditure decentralization ; (3) tax revenue decentralization has a positive impact on government size. | ||