Fiscal Performance, Institutional Design and Decentralization in European Union Countries

Author/Editor:

Luc Eyraud ; Anita Tuladhar ; Julio Escolano ; Marialuz Moreno Badia ; Juliane Sarnes

Publication Date:

February 1, 2012

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper analyzes the impact of decentralization on overall fiscal performance in the European Union, taking into account fiscal institutional arrangements. We find that spending decentralization has been associated with sizably better fiscal performance, especially when transfer dependency of subnational governments is low. However, subnational fiscal rules do not seem to be associated with better performance.

Series:

Working Paper No. 12/45

Subject:

European Economic and Monetary Union European Union Fiscal decentralization Fiscal policy Fiscal rules Government expenditures

English

Publication Date:

February 1, 2012

ISBN/ISSN:

9781463936464/1018-5941

Stock No:

WPIEA2012045

Format:

Paper

Pages:

32

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