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David Bartolini and Raffaella Santolini
''Fiscal autonomy and quality of governance in OECD countries''
( 2013, Vol. 33 No.1 )
Using a panel of 24 OECD countries, we study the link between the autonomy of sub-national governments and the quality of governance of a country. The results show that fiscal autonomy worsens citizens' perceptions of governance quality. In particular, the delegation of policy responsibilities to the regional level produces a robust negative effect on quality.
Keywords: Fiscal autonomy, Quality of governance, Fixed-effects vector decomposition estimator, Panel data analysis
JEL: D7 - Analysis of Collective Decision-Making: General
H1 - Structure and Scope of Government: General
Manuscript Received : Jan 16 2013 Manuscript Accepted : Mar 12 2013

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