[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/eee/poleco/v24y2008i3p705-712.html
   My bibliography  Save this article

The future of fiscal federalism

Author

Listed:
  • Tanzi, Vito
Abstract
For at least three decades after World War II, there was little interest in fiscal decentralization. Because of the large growth in public spending that took place during that period, a growth that was mainly focused at the central government level, this was a period characterized by fiscal centralization in most countries. Starting in the late 1970s, a reaction against large governments started. This reaction followed two distinct tracks: privatization and fiscal decentralization. The paper argues that these two tracks were almost two sides of the same coin and were largely mutually exclusive. They reflected similar concerns and objectives. In more recent decades, globalization has been creating global public goods or public "bads" and international activities that would require public attention or the action of a "world government". Because no such government exists, its role is progressively being delegated to proxies, in the form of international organizations, agreements, treaties, accords and other forms of international understandings. The paper concludes that this development is likely to weaken over time the role of central governments. It also speculates that it may strengthen the importance of municipalities.

Suggested Citation

  • Tanzi, Vito, 2008. "The future of fiscal federalism," European Journal of Political Economy, Elsevier, vol. 24(3), pages 705-712, September.
    • Handle: RePEc:eee:poleco:v:24:y:2008:i:3:p:705-712
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0176-2680(08)00021-9
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Tanzi,Vito & Schuknecht,Ludger, 2000. "Public Spending in the 20th Century," Cambridge Books, Cambridge University Press, number 9780521662918, September.
    2. Donato Masciandaro & Elöd Takáts & Brigitte Unger, 2007. "Black Finance," Books, Edward Elgar Publishing, number 12683.
    3. Razin,Assaf & Sadka,Efraim (ed.), 1999. "The Economics of Globalization," Cambridge Books, Cambridge University Press, number 9780521622684, September.
    4. Aslund,Anders & Dabrowski,Marek (ed.), 2007. "Europe after Enlargement," Cambridge Books, Cambridge University Press, number 9780521872867, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Serhan Cevik, 2019. "Policy coordination in fiscal federalism: drawing lessons from the Dubai debt crisis," International Journal of Emerging Markets, Emerald Group Publishing Limited, vol. 14(5), pages 899-915, April.
    2. Neyapti, Bilin, 2013. "Fiscal decentralization, fiscal rules and fiscal discipline," Economics Letters, Elsevier, vol. 121(3), pages 528-532.
    3. Lohse Tim, 2009. "Redistributional Consequences of Decentralizing the Tax-Transfer Scheme," Review of Economics, De Gruyter, vol. 60(2), pages 168-180, August.
    4. Neyapti, Bilin, 2010. "Fiscal decentralization and deficits: International evidence," European Journal of Political Economy, Elsevier, vol. 26(2), pages 155-166, June.
    5. Costa-Font, Joan & Ferrer-i-Carbonell, Ada, 2022. "Does devolution influence the choice and quality of public (vs private) health care?," Journal of Economic Behavior & Organization, Elsevier, vol. 202(C), pages 632-653.
    6. Mario Jametti & Marcelin Joanis, 2020. "Elections and de facto expenditure decentralization in Canada," Economics of Governance, Springer, vol. 21(3), pages 275-297, September.
    7. Yates Nicholas A, 2009. "Revisiting the Tobin Tax, in the Context of Development and the Financial Crisis," The Law and Development Review, De Gruyter, vol. 2(1), pages 257-282, November.
    8. Hefeker, Carsten & Neugart, Michael, 2018. "Non-cooperative and cooperative policy reforms under uncertainty and spillovers," Journal of Comparative Economics, Elsevier, vol. 46(1), pages 94-102.
    9. Barbara ERMINI & Raffaella SANTOLINI, 2013. "Does globalization matter on fiscal decentralization of OECD?," Working Papers 390, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    10. Rosella Levaggi & Francesco Menoncin, 2015. "Would less solidarity justify present calls for devolution?," Working papers 32, Società Italiana di Economia Pubblica.
    11. Vito Tanzi, 2010. "Revenue Sharing Arrangements: Options and Relative Merits (The Mahbub ul Haq Memorial Lecture)," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 49(4), pages 311-332.
    12. Serhan Cevik, 2017. "Size matters: fragmentation and vertical fiscal imbalances in Moldova," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 44(2), pages 367-381, May.
    13. Rosella Levaggi & Francesco Menoncin, 2017. "Would less regional income distribution justify the present call for devolution?," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 24(5), pages 780-799, September.
    14. Joan Costa-Font & Ada Ferrer-i-Carbonell, 2019. "Regional Decentralisation and the Demand for Public Health Care," Studies on the Spanish Economy eee2019-41, FEDEA.
    15. Ludek Kouba & Michal Mádr & Danuše Nerudová & Petr Rozmahel, 2015. "Policy Autonomy, Coordination or Harmonisation in the Persistently Heterogeneous European Union? WWWforEurope Working Paper No. 95," WIFO Studies, WIFO, number 58136, August.
    16. Ilg Michael, 2017. "Profit, Persuasion, and Fidelity: Why People Follow the Rule of Law," The Law and Development Review, De Gruyter, vol. 10(2), pages 275-303, October.
    17. Mr. Serhan Cevik, 2014. "Fragmentation and Vertical Fiscal Imbalances Lessons from Moldova," IMF Working Papers 2014/233, International Monetary Fund.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andersen, Torben M., 2006. "The public sector and international integration," Economics Letters, Elsevier, vol. 93(2), pages 202-209, November.
    2. Gonzalez-Eiras, Martín & Niepelt, Dirk, 2012. "Ageing, government budgets, retirement, and growth," European Economic Review, Elsevier, vol. 56(1), pages 97-115.
    3. Photis Lysandrou, 2016. "The colonization of the future: An alternative view of financialization and its portents," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 39(4), pages 444-472, October.
    4. Torsten Persson & Guido Tabellini, "undated". "Political Institutions and Policy Outcomes: What are the Stylized Facts?," Working Papers 189, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    5. B. Unger & F. van Waarden, 2009. "Attempts to Dodge Drowning in Data: Rule- and Risk-Based Anti Money Laundering Policies Compared," Working Papers 09-19, Utrecht School of Economics.
    6. Vinokurov, Evgeny & Libman, Alexander, 2012. "Eurasian Integration: Challenges of Transcontinental Regionalism," MPRA Paper 61639, University Library of Munich, Germany.
    7. Tervala, Juha, 2013. "Learning by devaluating: A supply-side effect of competitive devaluation," International Review of Economics & Finance, Elsevier, vol. 27(C), pages 275-290.
    8. Zodrow, George R, 2003. "Tax Competition and Tax Coordination in the European Union," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 10(6), pages 651-671, November.
    9. Vojtěch Roženský, 2012. "Mandatorní výdaje a flexibilita fiskální politiky v ČR [Mandatory Expenditure and the Flexibility of Fiscal Policy in the Czech Republic]," Politická ekonomie, Prague University of Economics and Business, vol. 2012(1), pages 40-57.
    10. Dan Anderberg, 2007. "Inefficient households and the mix of government spending," Public Choice, Springer, vol. 131(1), pages 127-140, April.
    11. Brahmbhatt, Milan & Canuto, Otaviano & Vostroknutova, Ekaterina, 2010. "Dealing with Dutch Disease," World Bank - Economic Premise, The World Bank, issue 16, pages 1-7, June.
    12. William R Kerr, 2018. "Heterogeneous Technology Diffusion and Ricardian Trade Patterns," The World Bank Economic Review, World Bank, vol. 32(1), pages 163-182.
    13. Michael Emerson, 2014. "Toward a Greater Eurasia," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 6(1), pages 35-68, January.
    14. Tanzi, Vito, 2005. "Globalization, Tax System, and the Architecture of the Global Economic System," IDB Publications (Working Papers) 2316, Inter-American Development Bank.
    15. Andersen, Torben M. & Bhattacharya, Joydeep & Gestsson, Marias H., 2021. "Pareto-improving transition to fully funded pensions under myopia," Journal of Demographic Economics, Cambridge University Press, vol. 87(2), pages 169-212, June.
    16. Lora, Eduardo, 2008. "El futuro de los pactos fiscales en América Latina," Coediciones, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 1310.
    17. Antonio Di Majo, 2020. "Budgeting pubblico, democrazia di bilancio, governo delle finanze pubbliche: la storia di una complessa interazione (Public budgeting, budet democracy, and public finances governance: History of a com," Moneta e Credito, Economia civile, vol. 73(291), pages 237-259.
    18. Ant—nio Afonso & Ludger Schuknecht & Vito Tanzi, 2023. "The size of government," Chapters, in: António Afonso & João Tovar Jalles & Ana Venâncio (ed.), Handbook on Public Sector Efficiency, chapter 1, pages 6-31, Edward Elgar Publishing.
    19. Bedri Peci, 2016. "Fiscal Transparency In Theory And Practice: The Case Of Kosovo," International Journal of Business and Management, International Institute of Social and Economic Sciences, vol. 4(4), pages 78-91, November.
    20. Christl, Michael & Köppl-Turyna, Monika & Kucsera, Dénes, 2018. "Public sector efficiency in Europe: Long-run trends, recent developments and determinants," Working Papers 14, Agenda Austria.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:poleco:v:24:y:2008:i:3:p:705-712. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505544 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.