CHRISTL, MICHAEL, Koeppl-Turyna, Monika , Kucsera, Denes
Si
Kyklos
Article
Científica
1.894
0.766
01/05/2020
000524102500004
2-s2.0-85077870166
This paper investigates the determinants of public-sector efficiency, in particular the role of fiscal decentralization and fiscal rules. For 23 European countries over the period from 1995 to 2015, we construct a measure of public-sector performance consisting of nine distinct indices for each area of public policy, such as administration, health education, economic performance, security and infrastructure. We use several efficiency techniques, e.g., free disposal hull and order-m, and investigate input-and output-oriented efficiency in the public sector. We analyse in depth the impact of fiscal decentralization and fiscal rules on public-sector efficiency. We conclude that, whereas decentralization fosters efficiency, fiscal rules have no effect. Moreover, fiscal rules, when combined with decentralization, may harm efficiency, which is consistent with the ratchet effect.
Europe; decentralization; economic activity; economic policy; efficiency measurement; fiscal policy; input-output analysis; policy analysis; public sector