Decentralization and the Challenge of Hard Budget Constraints

By Jonathan A. Rodden. 2000

418 citations recorded by the source corpus.

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

On the ‘economic dividend’ of devolution (2005, background): “One such examples is China, where ‘thetial engine of experimentation that devolution could otherwise generate. establishment of unauthorized SEZs [special economic zones] weakened the ability of the central governmentThird, the stunted capacity of regional governments when resources tend to accumula”
Bailouts in a Federation (2002, background): “Under what institutional circumstances is it likely that the central government will or will not bail out regional governments? Wildasin (1997) uses an externality in regional public goods to generate a preference on the part of the central government to bail out larger regions.”
Decentralization and governance: a special issue of World Development, 2013 (2014, background): “All local governments know this, and hence all have incentives to overspend today in the hope of being bailed out (Prud’homme, 1995; Rodden, 2006; Rodden et al., 2003; Tanzi, 1995).”
On the Theory and Practice of Fiscal Decentralization (2006, background): “In the illuminating collection of country studies to which I have made frequent reference, Rodden et al. (2003) find that certain properties or characteristics of the political system have profound implications for the presence or absence of hard budget constraints for decentralized levels of…”