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Trends of fiscal centralization: Portuguese local government reform

dc.contributor.authorRodrigues, Miguel
dc.contributor.authorCosta, Cláudia S.
dc.date.accessioned2014-10-08T09:37:06Z
dc.date.available2014-10-08T09:37:06Z
dc.date.issued2012
dc.description.abstractThe crisis of the sovereign debt forced Portuguese government to reach out for joint financial help form the IMF (International Monetary Fund), EU (European Union) and ECB (European Central Bank). In the financial agreement terms, IMF/EU/ECB stressed the need of a major redefinition of the local government organization. Nowadays, Portuguese local government is structured in 308 municipalities and 4259 parishes both with elected officials and administrative, financial and patrimonial autonomy. So, Portuguese government was asked to present a consolidation plan to reorganize local entities enhancing service delivery, improve efficiency and reduce cost. The main argument used is that excessive territorial and fiscal fragmentation undermines efficiency. This research seeks to measure the impact of territorial and fiscal fragmentation in local government spending. We begin by looking into Tiebout’s (1956) argument that an optimal level of local expenditures can be defined based on a consumer-voter preference towards public goods and taxation. Then we counterpoin with the opposite argument, used by international agencies, that, bought territorial and fiscal, centralization can produce economies of scale, reduce overlaps, control free riders and promote better accountability (Hendrick et al. 2011) The main objective of the paper is to test the competitive hypothesis that fragmentation/centralization induces higher spending in local government. To test this hypothesis we use a quantitative approach collecting primary financial data assembled from all Portuguese local government. We defined as a dependent variable, the amount of money transferred to parishes in each local government. Then, we use administrative fragmentation index in local government as indicators to measure territorial and population level of fragmentation. With the results of the paper, we hope to contribute to some clarification in the literature about fragmentation and federalist strategies to improve financial sustainability.por
dc.identifier.citationRodrigues, Miguel; Costa, Cláudia C. (2012). Trends of fiscal centralization: Portuguese local government reform. In Urban Affairs Association Conference. Pittsburgh, USApor
dc.identifier.urihttp://hdl.handle.net/10198/10747
dc.language.isoengpor
dc.peerreviewedyespor
dc.subjectUrban governmentpor
dc.subjectFiscal stresspor
dc.titleTrends of fiscal centralization: Portuguese local government reformpor
dc.typeconference object
dspace.entity.typePublication
oaire.citation.conferencePlacePittsburgh, USApor
oaire.citation.endPage19por
oaire.citation.startPage1por
oaire.citation.titleUrban Affairs Association Conferencepor
person.familyNameRodrigues
person.familyNameCosta
person.givenNameMiguel
person.givenNameCláudia S.
person.identifier.ciencia-idF71E-C528-C082
person.identifier.ciencia-id2F1B-0FEA-A447
person.identifier.orcid0000-0002-2254-2607
person.identifier.orcid0000-0001-8294-2218
person.identifier.ridF-2950-2018
person.identifier.ridAAL-4392-2020
person.identifier.scopus-author-id55932145600
person.identifier.scopus-author-id25624613800
rcaap.rightsopenAccesspor
rcaap.typeconferenceObjectpor
relation.isAuthorOfPublication637c1bda-1dc2-4532-b977-833f47e4d245
relation.isAuthorOfPublication42f3bdca-06df-4ce1-8ec3-57fdbb7f3e62
relation.isAuthorOfPublication.latestForDiscovery42f3bdca-06df-4ce1-8ec3-57fdbb7f3e62

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