Assessment of Financial Capabilities of Local Governments in EU Countries for the Development of Local Public Services
DOI:
https://doi.org/10.4335/14.3.379-397(2016)Keywords:
Local Self-Government, Fiscal DecentralisationAbstract
Local financing in advanced countries enables local governments to assess real local priorities as well as limitations. The present paper deals with financial capabilities of local governments for the development of public services, local government expenditure and fiscal expenditure decentralization in the EU28. By use of cluster analysis, local public expenditures are assessed by selected COFOG functions, as % of total local government expenditures in years 2010-2013. The results proved the largest differences in the set of countries in local government expenditures on social protection and the smallest differences in local expenditures on recreation and cultures, housing and community amenities.
References
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Ahmad, E., Brosio, G. & Tanzi, V.(2008) Local Service Provision in Selected OECD Countries: Do Decentralized Operations Work Better? IMF Working Paper WP/08/67 (Washington. CD: International Monetary Fund), doi: 10.5089/9781451869293.001.
Aristovnik, A. (2012) Fiscal Decentralization in Eastern Europe: Trends and selected Issues, Transylvanian Review of Administrative Sciences, 2012 (37/E), pp. 5-22, doi: 10.2139/ssrn.2187475.
Blöchliger, H. & Vammalle, C. (2012) Reforming Fiscal Federalism and Local Government: Beyond the Zero-Sum Game (OECD: Fiscal Federalism Studies, OECD Publishing), doi: 10.1787/9789264119970-en.
Boadway, R. & Shah, A. (2009) Fiscal Federalism: Principles and Practice of Multiorder Governance (Cambridge: Cambridge University Press), doi: 10.1017/CBO9780511626883.
Brezovnik, B., Oplotnik, Ž. J. & Vojinović, B. (2015) (De)Centralization of Public Procurement at the Local Level in the EU, Transylvanian Review of Administrative Sciences, 2015 (46), pp. 37-52.
Brown, C. V. & Jackson, P. M. (1990) Public Sector Economics (United Kingdom: Wiley-Blackwell).
Brown, T. L. & Potoski, M. (2003) Transaction Costs and Institutional Explanations for Government Service Production Decisions, Journal of Public Administration Research and Theory, 13 (4), pp. 441-468, doi: 10.1093/jpart/mug030.
De Mello L. A. & Berenstein, M. (2001) Fiscal Decentralization and Governance: A Cross-Country Analysis, IMF Working Paper WP/01/71 (Washington. CD: International Monetary Fund).
Dexia & Cemr (2012) Sub-national Public Finance in the European Union (Brussels: Dexia & Council of European Municipalities and Region).
Ebel R. D. & Yilmaz, S. (2002) On the Measurement and Impact of Fiscal Decentralisation, World Bank Policy Research Working Paper 2809 (Washington. CD: World Bank).
Everitt, B., Landau, S., Leese, M. & Stahl, D. (2011) Cluster Analysis (London: John Wiley & Sons), doi: 10.1002/9780470977811.
EPSU (2006) Decentralisation and Public Services: A Case of Public Sector Restructuring (Brussels: EPSU Secretariat).
Eurostat (2015) Statistic Database, Total General Government Expenditure (Luxembourg: Eurostat), avaliable at: http://epp.eurostat.ec.europa.eu/portal/page/portal/eurostat/
home/ (December 20, 2015).
Eurostat (2013) European System of Accounts – ESA 2010 (Luxembourg: Publications Office of the European Union), doi: 10.2785/16644.
Governatori, M. & Yim, D. (2012) European Economy. Fiscal Decentralisation and Fiscal Outcomes (Brussels: European Commission), doi: 10.2765/27462.
Halaskova, M. & Halaskova, R. (2015) Fiscal Decentralisation and Provision of Local Public Services in Selected EU Countries, Lex Localis – Journal of Local Self-Government, 13(3), pp. 595-613, doi: 10.4335/13.3.595-613(2015).
Halse, A. H. (2016) More for everyone: The Effect of Local Interests on Spending on Infrastructure. European Journal of Political Economy, 43, pp. 41-56, doi: 10.1016/j.ejpoleco.2016.02.003.
Chapman, J. I. (2003) Local Government Autonomy and Fiscal Stress: The Case of California Counties, State & Local Government Review, 35(1), pp. 15-25. doi: 10.1177/0160323X0303500102.
Klausen, K.K. & Magnier, A. (1998) The Anonymous Leader. Appointed CEOs in Western Local Goverment (Odense: Odense University Press).
Lessmann, CH. (2006) Fiscal Decentralization and Regional Disparity: A Panel Data Approach for OECD Countries (Munich: Institute for Economic Research).
Lin, W. C. (2013) Balanced Scorecard and IPA Enables Public Services in Town ship Management: Local Government Performance, Lex Localis-Journal of Local Self-Government, 11(1), pp. 21-32, doi: http://dx.doi.org/10.4335/199.
Mikusova Merickova, B. & Nemec, J. (2013) Factors Determining the Success of Contracting Local Public Services: Waste Collection and Waste Disposal, Management of Cemeteries in Slovakia, Lex Localis-Journal of Local Self- Government, 11(3), pp. 375-385, doi: 10.4335/11.3.375-385(2013).
Mouritzen, P.E. & Svara, J.H. (2002) Leadership at the Apex. Politicians a Administrators in Western Local Governments (Pittsburgh: University of Pittsburgh Press).
Musgrave, R. A. (1959) Theory of Public Finance (New York: McGraw-Hill).
Nenkova, P. (2014) Fiscal Decentralization and Local Finance Reforms in Bulgaria: A Review of Ten Years’ Experience, Mediterranean Journal of Social Sciences, 5(23), pp. 342-352. doi:10.5901/mjss.2014.v5n23p342.
Neyapti, B. (2010) Fiscal Decentralization and Deficits: International Evidence, European Journal of Political Economy, 26 (2), pp. 155-166, doi: 10.1016/j.ejpoleco.2010.01.001.
Oates, W. E. (1999) An Essay on Fiscal Federalism, Journal of Economic Literature, 37(3), pp. 1120-1149, doi: 10.1257/jel.37.3.1120.
OECD/KIPF (2013) Measuring Fiscal Decentralisation: Concepts and Policies, OECD Fiscal Federalism Studies (Paris: OECD Publishing), doi: 10.1787/9789264174849-en.
Oplotnik, Z. J. & Finžgar, M. (2013) EU Member States and Fiscal Decentralization- Empirical Comparison, Innovative Issues and Approaches in Social Sciences, 6(3), pp. 39- 64, doi: 10.12959/issn.1855-0541.IIASS-2013-no3-art03.
Rodríguez-Pose, A. & Krøijer, A. (2009) Fiscal Decentralisation and Economic Growth in Central and Eastern Europe, Growth and Change, 40 (3), pp. 387-417.
Sopkuliak, A. (2012) Fiškálna autonómia miestnej samosprávy a jej výskum v geografii, Acta Geographica Universitatis Comenianae, 56 (2), pp. 215-236.
Sow, M. & Razafimahefa, I.F. (2015) Fiscal Decentralization and the Efficiency of Public Service Delivery, IMF Working Paper WP/15/59 (Washington. CD: International Monetary Fund), doi: 10.5089/9781484351116.001.
Szarowska, I. (2015) Testing link between fiscal decentralization and economic development in the European Union, In: Proceedings of 12th International Scientific Conference on Economic Policy in the European Union Member Countries (Karviná: SU OPF), pp. 766-775.
World Bank (2015) Decentralization & Subnational Regional Economics (Washington: Worldbank group).</span></p>
Published
2016-07-31
Issue
Section
Conference Paper (Annual Conference 2020)
