Baskaran, Thushyanthan (2011): Tax decentralization and public deficits in OECD countries. Forthcoming in: Publius: The Journal of Federalism
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This article explores the effect of sub-national tax autonomy and sub-national control over shared taxes on primary deficits with panel data for 23 OECD countries over the 1975-2000 period. The results suggest that sub-national tax autonomy has a U-shaped effect on primary deficits. We find that the “average” country in the sample could increase the fiscal stability of its public sector by reducing sub-national tax autonomy. There is also some indication that subnational control over shared taxes increases fiscal stability, but we obtain this result only if Belgium and Spain are included in the sample.
|Item Type:||MPRA Paper|
|Original Title:||Tax decentralization and public deficits in OECD countries|
|Keywords:||Tax decentralization, Public deficits, Fiscal instability|
|Subjects:||H - Public Economics > H7 - State and Local Government ; Intergovernmental Relations > H77 - Intergovernmental Relations ; Federalism ; Secession
H - Public Economics > H7 - State and Local Government ; Intergovernmental Relations > H72 - State and Local Budget and Expenditures
H - Public Economics > H7 - State and Local Government ; Intergovernmental Relations > H74 - State and Local Borrowing
|Depositing User:||Thushyanthan Baskaran|
|Date Deposited:||02. Dec 2011 17:10|
|Last Modified:||24. Sep 2015 06:25|
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