Fiscal Decentralisation and Government Size: Evidence from a Panel of European Countries

• Suzana Makreshanska-Mladenovska ^[1] ; Goran Petrevsk ^[1]
  1. [1] Saints Cyril and Methodius University of Skopje

     Saints Cyril and Methodius University of Skopje

     Macedonia

     
• Localización: Hacienda Pública Española / Review of Public Economics, ISSN 0210-1173, Nº 229, 2019, págs. 33-58
• Idioma: inglés
• Enlaces
  • Texto completo (pdf)
• Resumen

  • This paper provides empirical evidence on the association between fiscal decentralisation and government size on a sample of 28 European countries during 1990-2016. The main findings from our study are as follows: first, expenditure decentralisation is associated with smaller government size; second, revenue decentralisation has negative effect on government size only in the sub-sample of Central and Eastern European countries; third, we cannot provide empirical support to the common-pool hypothesis, implying that it is expenditure decentralisation that matters for the size of general government notwithstanding how sub-national governments finance their expenditure.