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Devolution Dynamics of Spanish Local Government

Author

Listed:
  • Maria Teresa Balaguer-Coll

    (Departament d'Economia, Universitat Jaume I Castelló)

  • Diego Prior

    (Departament d'Economia de l'Empresa, Universitat Autònoma de Barcelona)

  • Emili Tortosa-Ausina

    (Departament d'Economia, Universitat Jaume I Castelló)

Abstract

Over the last few years, ther has been a devolutionary tendency in many developed and developing countries. In this article we propose a methodology to decompose whether the benefits in terms of effciency derived from transfers of powers from higher to municipal levels of government "the "economic dividend" of devolution) might increase over time. This methodology is based on linear programming approaches for effciency measurement. We provide anapplication to Spanish municipalities, which have had to adapt to both the European Stability and Growth Pact as well as to domestic regulation seeking local governments balanced budget. Results indicate that efficiency gains from enhaced decentralization have increased over time. However, the way through which these gains accrue differs across municipalities -in some cases technical change is the main component, whereas in others catching up dominates.

Suggested Citation

  • Maria Teresa Balaguer-Coll & Diego Prior & Emili Tortosa-Ausina, "undated". "Devolution Dynamics of Spanish Local Government," Working Papers 201001, Departament Empresa, Universitat Autònoma de Barcelona.
    • Handle: RePEc:bbe:wpaper:201001
    as

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    File URL: https://webs2002.uab.es/dep-economia-empresa/documents/10-1.pdf
    File Function: First version, 2010
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    Citations

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    Cited by:

    1. Andy Pike & Andrés Rodríguez-Pose & John Tomaney & Gianpiero Torrisi & Vassilis Tselios, 2010. "In Search of the 'Economic Dividend' of Devolution: Spatial Disparities, Spatial Economic Policy and Decentralisation in the UK," SERC Discussion Papers 0062, Centre for Economic Performance, LSE.
    2. Maria Teresa Balaguer-Coll & Diego Prior & Emili Tortosa-Ausina, 2013. "On the determinants of local government debt: Does one size fit all?," Working Papers 2013/16, Economics Department, Universitat Jaume I, Castellón (Spain).

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