Abstract
This chapter explores the impact of fiscal decentralisation on the efficiency of public service delivery. It uses a stochastic frontier method to estimate time-varying efficiency coefficients and analyses the impact of fiscal decentralisation on those efficiency coefficients. The findings indicate that fiscal decentralisation can improve the efficiency of public service delivery but only under specific conditions. First, the decentralisation process requires adequate political and institutional environments. Second, a sufficient degree of expenditure decentralisation seems necessary to obtain favourable outcomes. Third, decentralisation of expenditure needs to be accompanied by sufficient decentralisation of revenue. Absent these conditions, fiscal decentralisation can worsen the efficiency of public service delivery.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.