{
  "title": "Fiscal Decentralization and the Efficiency of Public Service Delivery",
  "publication": "IMF Working Papers, March 17, 2015",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/fiscal-decentralization-and-the-efficiency-of-public-service-delivery-42789",
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  "summary": "This paper explores the impact of fiscal decentralization on the efficiency of public service delivery. It uses a stochastic frontier method to estimate time-varying efficiency coefficients and analyzes the impact of fiscal decentralization on those efficiency coefficients.",
  "sections": [
    {
      "heading": "Summary of analysis and method",
      "content": "- Uses a stochastic frontier method to estimate time-varying efficiency coefficients.\n- Analyzes the impact of fiscal decentralization on those estimated efficiency coefficients."
    },
    {
      "heading": "Key findings",
      "content": "- Fiscal decentralization can improve the efficiency of public service delivery but only under specific conditions.\n- Required conditions for favorable outcomes:\n  - Adequate political and institutional environments.\n  - A sufficient degree of expenditure decentralization.\n  - Decentralization of expenditure must be accompanied by sufficient decentralization of revenue.\n- Absent those conditions, fiscal decentralization can worsen the efficiency of public service delivery."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Prioritize building adequate political and institutional environments before or alongside decentralization reforms.\n- Ensure expenditure decentralization reaches a sufficient degree to enable efficiency gains.\n- Pair expenditure decentralization with sufficient revenue decentralization to avoid adverse efficiency effects."
    },
    {
      "heading": "Subject coverage and keywords",
      "content": "- Subject: Education, Expenditure, Fiscal federalism, Health, Public employment\n- Keywords: fiscal decentralization, public expenditure, significance level, WP\n\n---\n\n Content in this bundle\n\n- wp1559\n  - wp1559 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp1559 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/fiscal-decentralization-and-the-efficiency-of-public-service-delivery-42789"
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    "Authors: Moussé Sow, Ivohasina F Razafimahefa",
    "Published: March 17, 2015",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781484351116.001",
    "Uses a stochastic frontier method to estimate time-varying efficiency coefficients.",
    "Analyzes the impact of fiscal decentralization on those estimated efficiency coefficients.",
    "Fiscal decentralization can improve the efficiency of public service delivery but only under specific conditions.",
    "Required conditions for favorable outcomes:",
    "Absent those conditions, fiscal decentralization can worsen the efficiency of public service delivery.",
    "Prioritize building adequate political and institutional environments before or alongside decentralization reforms.",
    "Ensure expenditure decentralization reaches a sufficient degree to enable efficiency gains.",
    "Pair expenditure decentralization with sufficient revenue decentralization to avoid adverse efficiency effects.",
    "Subject: Education, Expenditure, Fiscal federalism, Health, Public employment",
    "Keywords: fiscal decentralization, public expenditure, significance level, WP",
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