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Title: Fiscal Decentralization and Government Size: Evidence from a Panel of European Countries
Authors: Makreshanska mladenovska, Suzana 
Petrevski, Goran 
Keywords: Fiscal decentralisation, government size, Leviathan hypothesis, common-pool hypothesis, GMM
Issue Date: 2019
Publisher: Instituto de Estudios Fiscales
Source: Makreshanska Mladenovska, S., and Petrevski. G., (2019) “Fiscal Decentralisation and Government Size: Evidence from a Panel of European Countries” Hacienda Pública Española / Review of Public Economics, 229 (2/2019), pp. 33-58
Journal: Hacienda Pública Española / Review of Public Economics
Abstract: This paper provides empirical evidence on the association between fiscal decentralisation and govern-ment size on a sample of 28 European countries during 1990-2016. The main findings from our study are as follows: first, expenditure decentralisation is associated with smaller government size; second, revenue decentralisation has negative effect on government size only in the sub-sample of Central and Eastern European countries; third, we cannot provide empirical support to the common-pool hypoth-esis, implying that it is expenditure decentralisation that matters for the size of general government notwithstanding how sub-national governments finance their expenditure.
DOI: 10.7866/HPE-RPE.19.2.2
Appears in Collections:Faculty of Economics 03: Journal Articles / Статии во научни списанија

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