Date of this Version
Journal of Public Economics
Advocates of fiscal decentralization argue that among other benefits, it can increase the efficiency of delivery of government services. This paper is one of the first to evaluate this claim empirically by looking at the association between expenditure decentralization and the productive efficiency of government using a data set of Swiss cantons. We first provide careful evidence that expenditure decentralization is a powerful proxy for legal local autonomy. Further panel regressions of Swiss cantons provide robust evidence that more decentralization is associated with higher educational attainment. We also show that these gains lead to no adverse effects across education types but that male students benefited more from educational decentralization closing, for the Swiss case, the gender education gap.
© 2007. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/
decentralization, productive efficiency, local public goods
Barankay, I., & Lockwood, B. (2007). Decentralization and the Productive Efficiency of Government: Evidence From Swiss Cantons. Journal of Public Economics, 91 (5-6), 1197-1218. http://dx.doi.org/10.1016/j.jpubeco.2006.11.006
Date Posted: 27 November 2017
This document has been peer reviewed.
At the time of publication, author Iwan Barankay was affiliated with the University of Warwick. Currently, he is a faculty member at the Management Department at the University of Pennsylvania.