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Extreme events and the resilience of decentralized governance

Author

Listed:
  • Maria Cadaval Sampedro
  • Ana Herrero Alcalde
  • Santiago Lago-Peñas
  • Jorge Martinez-Vazquez
Abstract
Extreme events, such as economic crises, pandemics, natural disasters, or military conflicts, can affect the balance between centralization and decentralization forces across countries and transform, temporarily or more permanently, the design of multilevel governance. Using a panel for 91 developing and developed countries from 1960 to 2018, and another one for OECD countries during 1995-2018, we examine the effects of extreme external shocks on the decentralization level. We find that internal conflicts boost decentralization in both OECD and non-OECD countries, while natural disasters reduce decentralization in non-OECD countries, but not so in OECD members. Moreover, those effects are long lasting in both cases of extreme events. Finally, economic recessions are the less relevant kind of shocks. They do not have significant effects on the level of decentralization, except for expenditure decentralization in OECD countries.

Suggested Citation

  • Maria Cadaval Sampedro & Ana Herrero Alcalde & Santiago Lago-Peñas & Jorge Martinez-Vazquez, 2022. "Extreme events and the resilience of decentralized governance," Working Papers. Collection A: Public economics, governance and decentralization 2212, Universidade de Vigo, GEN - Governance and Economics research Network.
    • Handle: RePEc:gov:wpaper:2212
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    File URL: http://infogen.webs.uvigo.es/WP/WP2212.pdf
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    References listed on IDEAS

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    Cited by:

    1. Alena F. Kireyeva & Kiryl V. Rudy, 2024. "Paradoxes of the Anti-crisis Role of Fiscal Federalism: Analytical Review of Studies," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 3, pages 86-97, June.

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    More about this item

    Keywords

    Fiscal decentralization; extreme events; governance; resilience; political decentralization.;
    All these keywords.

    JEL classification:

    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • H84 - Public Economics - - Miscellaneous Issues - - - Disaster Aid

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