Local Taxes and Local Expenditures in Developing Countries: Strengthening the Wicksellian Connection

29 Pages Posted: 24 Apr 2014

See all articles by Richard M. Bird

Richard M. Bird

University of Toronto - Joseph L. Rotman School of Management; Georgia State University - Andrew Young School of Public Policy

Enid Slack

University of Toronto Munk Centre for International Studies

Date Written: February 10, 2014

Abstract

Countries around the world are decentralizing in various ways. Many studies have evaluated such reforms and their effects on corruption, stability and growth as well as on the provision of such services as health and education. Decentralization is often intended in part to make government administration more efficient, flexible and responsive. Since what governments do and how well they do it is inseparably entangled with the question of how they are financed, this article outlines why and how a key element in a sound decentralization program should be to strengthen the linkage between local expenditures and local revenues -- the Wicksellian Connection.

Keywords: decentralization; local finance; benefit principle; user charges

JEL Classification: H11, H71, P43

Suggested Citation

Bird, Richard Miller and Slack, Enid, Local Taxes and Local Expenditures in Developing Countries: Strengthening the Wicksellian Connection (February 10, 2014). Rotman School of Management Working Paper No. 2423519. Available at SSRN: https://ssrn.com/abstract=2423519 or http://dx.doi.org/10.2139/ssrn.2423519

Richard Miller Bird (Contact Author)

University of Toronto - Joseph L. Rotman School of Management ( email )

105 St. George Street
Toronto, Ontario M5S 3E6 M5S1S4
Canada
905-274-8841 (Phone)

Georgia State University - Andrew Young School of Public Policy

International Studies Program
Atlanta, GA 30303-3083
United States

HOME PAGE: http://www.aysps.gsu.edu

Enid Slack

University of Toronto Munk Centre for International Studies ( email )

Toronto, Ontario
Canada

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