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The Effects of Fiscal Decentralization on Economic Growth and Debt Levels.

Altieri, Camilla LU (2023) EKHS42 20231
Department of Economic History
Abstract (Swedish)
In providing public goods, the government confronts challenges in determining
the optimal pricing strategy due to the lack of information on individual
preferences and the propensity of consumers to misreport their true valuations. Decentralisation of fiscal authority could be a partial solution to this problem, as lower government levels have better access the diverse regional and local preferences and therefore might be able to implement policies that are more economically efficient.

Using panel data from 20 high-income OECD countries, this study examines whether
an increase in regional autonomy improves a nation’s development performance. I
performed four regression equations, Firstly, I examined the effect of decentralisation on... (More)
In providing public goods, the government confronts challenges in determining
the optimal pricing strategy due to the lack of information on individual
preferences and the propensity of consumers to misreport their true valuations. Decentralisation of fiscal authority could be a partial solution to this problem, as lower government levels have better access the diverse regional and local preferences and therefore might be able to implement policies that are more economically efficient.

Using panel data from 20 high-income OECD countries, this study examines whether
an increase in regional autonomy improves a nation’s development performance. I
performed four regression equations, Firstly, I examined the effect of decentralisation on the overall growth performance. Secondly, I estimated the effect of decentralisation on consumer and producer efficiency, as measured respectively by education and productivity. Finally, I evaluated the effect of decentralisation on the debt-to-GDP ratio. I have discovered that decentralisation increases growth and secondary enrolment while at the same time decreasing the debt-to-GDP ratio. No conclusion could be drawn regarding the relationship between decentralisation and productivity. (Less)
Please use this url to cite or link to this publication:
author
Altieri, Camilla LU
supervisor
organization
course
EKHS42 20231
year
type
H2 - Master's Degree (Two Years)
subject
language
English
id
9130859
date added to LUP
2023-08-14 11:28:45
date last changed
2023-08-14 11:28:45
@misc{9130859,
  abstract     = {{In providing public goods, the government confronts challenges in determining
the optimal pricing strategy due to the lack of information on individual
preferences and the propensity of consumers to misreport their true valuations. Decentralisation of fiscal authority could be a partial solution to this problem, as lower government levels have better access the diverse regional and local preferences and therefore might be able to implement policies that are more economically efficient.

Using panel data from 20 high-income OECD countries, this study examines whether
an increase in regional autonomy improves a nation’s development performance. I
performed four regression equations, Firstly, I examined the effect of decentralisation on the overall growth performance. Secondly, I estimated the effect of decentralisation on consumer and producer efficiency, as measured respectively by education and productivity. Finally, I evaluated the effect of decentralisation on the debt-to-GDP ratio. I have discovered that decentralisation increases growth and secondary enrolment while at the same time decreasing the debt-to-GDP ratio. No conclusion could be drawn regarding the relationship between decentralisation and productivity.}},
  author       = {{Altieri, Camilla}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{The Effects of Fiscal Decentralization on Economic Growth and Debt Levels.}},
  year         = {{2023}},
}