Browsing by Subject "Fiscal discipline"

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    Does fiscal decentralization promote fiscal discipline?
    (Routledge, 2016) Akin, Z.; Bulut-Cevik, Z. B.; Neyapti, B.
    We investigate the efficiency and equity implications of a redistributive rule that takes into account both local tax collection efforts and deviation of local incomes from respective targets under alternative fiscal mechanisms. We show that, if the general budget constraint is binding, the proposed transfer rule leads to higher fiscal discipline under fiscal decentralization (FD) than under centralized redistribution. Although the centralized decision yields better income distribution than FD, FD also improves income distribution unambiguously when equalization across regions is targeted explicitly. When localities act strategically, the private sectors utility weight enhances the disciplinary effect of decentralization. © 2016 Taylor & Francis Group, LLC.
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    Fiscal convergence in the European Union
    (Elsevier BV, 2008) Kocenda, E.; Kutan, A. M.; Yigit, T. M.
    We empirically examine the fiscal convergence of the recent ten European Union (EU) members using the Maastricht fiscal convergence criteria. We test for absolute beta and sigma convergence of the new members in comparison to the Maastricht benchmarks, as well as the EU15 figures, using methodologies that allow for structural breaks. The results show poor fiscal performance in the European Union in general, suggesting that monetary unions do not necessarily encourage fiscal convergence for its members. © 2008 Elsevier Inc. All rights reserved.