Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/30113
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dc.contributor.authorBlume, Lorenzen_US
dc.contributor.authorVoigt, Stefanen_US
dc.date.accessioned2009-08-12en_US
dc.date.accessioned2010-03-05T15:43:23Z-
dc.date.available2010-03-05T15:43:23Z-
dc.date.issued2008en_US
dc.identifier.urihttp://hdl.handle.net/10419/30113-
dc.description.abstractThe economic effects of federalism are unclear: some papers find that federalism has strong positive effects on a number of economically relevant variables, others find negative effects. The results often crucially hinge upon the proxies for federalism used. In this paper, we critically survey the existing indicators for both federalism and fiscal decentralization. We argue that federalism is a constitutional institution whereas decentralization is (the outcome of) a policy choice and that the two ought to be systematically distinguished because decentralization can also occur in non-federally structured states. We further argue that institutional details are very important with regard to federalism and that dummy variables usually capture only very specific aspects of the institutional details. We use factor analysis to test whether the latent variables behind the observed indicators support these assumptions. It is shown that more than two important factors result, implying that a more fine-grained differentiation beyond the distinction between federalism and decentralization might be in order. The correlations of the most important proxies for various aspects of federalism and decentralization with a number of (quasi-) exogenous variables as well as with institutional variables are usually rather modest.en_US
dc.language.isoengen_US
dc.publisher|aUniv., Dep. of Business Administration & Economics |cMarburgen_US
dc.relation.ispartofseries|aJoint discussion paper series in economics |x2008,21en_US
dc.subject.jelH1en_US
dc.subject.jelH3en_US
dc.subject.jelH5en_US
dc.subject.jelH8en_US
dc.subject.ddc330en_US
dc.subject.keywordFederalismen_US
dc.subject.keywordFiscal federalismen_US
dc.subject.keywordDecentralizationen_US
dc.titleFederalism and decentralization: a critical survey of frequently used indicatorsen_US
dc.type|aWorking Paperen_US
dc.identifier.ppn606641289en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-

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