Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/145048 
Year of Publication: 
2016
Series/Report no.: 
CESifo Working Paper No. 6013
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
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.
Subjects: 
fiscal decentralization
administrative decentralization
federalism
aggregate decentralization
government
tax administration
business permits
JEL: 
H11
H70
K20
K40
Document Type: 
Working Paper
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