Government Decentralization and International Government Performance

27 Pages Posted: 24 Aug 2016

See all articles by Rajeev K. Goel

Rajeev K. Goel

Illinois State University - Department of Economics

Ummad Mazhar

Shaheed Zulkar Ali Bhutto Institute of Science and Technology

Michael A. Nelson

University of Akron - Department of Economics

Rati Ram

Illinois State University - Department of Economics

Date Written: August 02, 2016

Abstract

Adding to the literature on the effects of government decentralization, this paper uses a large sample of individual responses from more than a hundred countries about public’s perceptions of government’s performance along various dimensions to study the relative influences of different types of decentralization, including fiscal decentralization, administrative decentralization, federalism, and aggregate decentralization. Our results show that fiscal and administrative decentralization are qualitatively alike in that greater decentralization in each case improves perceptions of the government performance. Federalist states’ performance and overall decentralization are viewed somewhat differently. With regard to tax administration particularly, fiscal and administrative forms of government decentralization result in better outcomes than overall decentralization. Finally, service industries and large firms, ceteris paribus, perceived government performance differently.

Keywords: fiscal decentralization, administrative decentralization, federalism, aggregate decentralization, government, tax administration, business permits

JEL Classification: H110, H700, K200, K400

Suggested Citation

Goel, Rajeev K. and Mazhar, Ummad and Nelson, Michael A. and Ram, Rati, Government Decentralization and International Government Performance (August 02, 2016). CESifo Working Paper Series No. 6013. Available at SSRN: https://ssrn.com/abstract=2828620

Rajeev K. Goel (Contact Author)

Illinois State University - Department of Economics ( email )

Normal, IL 61790-4200
United States

Ummad Mazhar

Shaheed Zulkar Ali Bhutto Institute of Science and Technology ( email )

90 and 100 Clifton
Karachi, ISLAMABAD 75600
Pakistan

Michael A. Nelson

University of Akron - Department of Economics ( email )

Akron, OH 44325
United States
330-972-7939 (Phone)
330-972-5356 (Fax)

Rati Ram

Illinois State University - Department of Economics ( email )

Normal, IL 61790-4200
United States
309-438-7101 (Phone)
309-438-5228 (Fax)

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