Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/78623 
Year of Publication: 
2013
Series/Report no.: 
ZEW Discussion Papers No. 13-049
Publisher: 
Zentrum für Europäische Wirtschaftsforschung (ZEW), Mannheim
Abstract: 
Following the ambiguous results in the literature aimed at understanding the empirical link between fiscal federalism and economic growth, this paper revisits the question using a Bayesian Model Averaging approach. The analysis suggests that the failure to appropriately account for model uncertainty may have previously led to biased estimates. The results from a sample of 23 OECD countries over 1975-2000 indicate that after controlling for unobserved country heterogeneity, there is no robust link, neither positive, nor negative, between output growth and fiscal federalism (measured as sub-national governments' share of own source tax revenue).
Subjects: 
Fiscal Federalism
Economic Growth
Bayesian Model Averaging
JEL: 
C11
H70
O43
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size
394.08 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.