Subject: Fiscal decentralisation, government size, Leviathan hypothesis, common-pool hypothesis, GMM
Year: 2019
Type: Journal Article
Title: Fiscal Decentralization and Government Size: Evidence from a Panel of European Countries
Author: Makreshanska mladenovska, Suzana
Author: Petrevski, Goran
Abstract: This paper provides empirical evidence on the association between fiscal decentralisation and govern-ment 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 hypoth-esis, implying that it is expenditure decentralisation that matters for the size of general government notwithstanding how sub-national governments finance their expenditure.
Publisher: Instituto de Estudios Fiscales
Relation: Hacienda Pública Española / Review of Public Economics
Identifier: oai:repository.ukim.mk:20.500.12188/6805
Identifier: Makreshanska Mladenovska, S., and Petrevski. G., (2019) “Fiscal Decentralisation and Government Size: Evidence from a Panel of European Countries” Hacienda Pública Española / Review of Public Economics, 229 (2/2019), pp. 33-58
Identifier: http://hdl.handle.net/20.500.12188/6805Identifier: 10.7866/HPE-RPE.19.2.2
