Limited Fiscal Autonomy of Croatian Large Cities

  • Dubravka Jurlina Alibegović Institute of Economics, Zagreb
  • Sabina Hodžić University of Rijeka, Faculty of Tourism and Hospitality Management
  • Emira Bečić Croatian Bureau of Statistics
Keywords: fiscal autonomy, local public finance, large cities, index of fiscal control, Croatia

Abstract

By using the OECD classification system, this paper explores to what level Croatian large cities control their tax revenues and specifies the ability of these authorities to introduce taxes and independently generate revenue. The index of fiscal control of Croatian large cities has been calculated and compared with that index of all remaining local government units. The results of our analysis show that in 2015 25 large cities had a slightly higher level of fiscal autonomy when compared with all remaining 531 local government units in Croatia.

References

Bach, S. Blöchliger, H. & Wallau, D. (2009) The Spending Power of Sub-Central Governments: A Pilot Study, COM/CTPA/ECO/GOV/WP(2009)8, OECD Network on Fiscal Relations Across Levels of Government, available at: http://www.oecd.org/ctp/federalism/42783063.pdf.

Blöchliger, H. & Kim, J. (2016) Fiscal Federalism: Making Decentralisation Work (Paris: OECD Publishing).

Blöchliger, H. & Rebesone, J. (2009) The Fiscal Autonomy of Sub-national Governments: An Update, OECD Fiscal Network Working Papers No. 9 (Paris: OECD Publishing).

Boetti, L. Piacenza, M. & Turati, G. (2012) Decentralization and Local Governments' Performance: How Does Fiscal Autonomy Affect Spending Efficiency?, FinanzArchiv: Public Finance Analysis, 68(3), pp. 269-302.

Boyn, G. A. (1996) Competition and Local Government: A Public Choice Perspective, Urban Studies, 33(4-5), pp. 703-721.

Chapman, J. I. (1999) Local Government. Fiscal Autonomy and Fiscal Stress: The Case of California, Lincoln Institute of Land Policy Working Paper 99JC1 (Lincoln Institute of Land Policy: Cambridge MA).

Darby, J. Muscatelli, A. & Graeme, R. (2002) Fiscal Federalism and Fiscal Autonomy: Lessons for the UK from Other Industrialised Countries (Glasgow: University of Glasgow).

Gramlich, E. M. (1990) The Economics of Fiscal Federalism and Its Reform. In Swartz. T. R. & Peck. J. E. (eds.) The Changing Face of Fiscal Federalism (New York: Armonk), pp. 152-167.

Jurlina Alibegović, D. Slijepčević, S. & Kordej-De Villa, Ž. (2014) Regional Development and Decentralization – Two Options to Overcome Lack of Funding, Transylvanian Review of Administrative Sciences, 43 E/2014, pp. 146-167.

Jurlina Alibegović, D. (2010) Innovative Municipal Development Financing. The Case of Three Croatian Cities. In Ramirez, L. & Kebede, G. (eds.) Strategic Planning for Local Development. Case Studies from Small and Mid-Sized European Cities (Open Society Institute, Belgrade and Budapest: UN-HABITAT SIRP and Local Government and Public Service Reform Initiative), pp. 167-188.

Kim, J. Lotz, J. & Blöchliger, H. (2013) Measuring Fiscal Decentralization: Concepts and Policies, OECD Fiscal Federalism Studies (Paris: OECD Publishing).

Kukovič, S., Haček, M. & Bukovnik, A. (2016) The Issue of Local Autonomy in the Slovenian Local Government System, Lex Localis – Journal of Local Self-Government, 14(3), pp. 303 – 320, https://doi.org/10.4335/14.3.303-320(2016).

Ladner, A. Keuffer, N. & Baldersheim, H. (2015) Local Autonomy Index for European countries (1990-2014), Release 1.0 (Brussels: European Commission).

Meloche, J-P. Vaillancourt, F. & Yilmaz, S. (2004) Decentralization or Fiscal Autonomy? What Does Really Matter? Effects on Growth and Public Sector Size in European Transition Countries, World Bank Policy Research Working Paper 3254 (Washington D.C.: The World Bank).

Sandor, E. Scott, S. & Benn, J. (2009) Innovative financing to fund development: progress and prospects, DCD Issues Brief, available at: http://www.oecd.org/dac/effectiveness/44087344.pdf.

Santos Curto, H. & Dias, Á. (2014) Administrative reforms and performance of local public policies, International Journal of Public Sector Management, 27(6), pp. 462-474(13).

Sedmihradská, L. & Bakoš, E. (2016) Municipal Tax Autonomy and Tax Mimicking in Czech Municipalities, Lex Localis – Journal of Local Self-Government, 14(1), pp. 75-92, https://doi.org/10.4335/14.1.75-92(2016).

Ter-Minassian, T. (1997) Fiscal Federalism in Theory and Practice, International Monetary Fund (Washington, D.C.: International Monetary Fund).

Wildasin, D. E. (1997) Fiscal Aspects of Evolving Federations (Cambridge: Cambridge University Press).

Wolman, H. (2008) Comparing Local Governments across Counties: Conceptual and Methodological Challenges to Building a Field of Comparative Local Government Studies, Environment and Planning of Government and Policy, 26(1), pp. 87-103.

Wolman, H. McManmon, R., Bell, M. & Brunori, D. (2008) Comparing Local Government Autonomy Across States, George Washington Institute Public Policy Working Paper 35 (Washington, D.C.: The George Washington University).

Wolman, H. & Goldsmith, M. (1990) Local Autonomy as a Meaningful Analytic Concept, Urban Affairs Quarterly, 26(1), pp. 3-27.

Published
2018-01-02
Section
Articles