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| David Bartolini and Raffaella Santolini |
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| ''Fiscal autonomy and quality of governance in OECD countries'' |
| ( 2013, Vol. 33 No.1 ) |
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| 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. |
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| 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 |
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| Manuscript Received : Jan 16 2013 | | Manuscript Accepted : Mar 12 2013 |
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