FEE

Decentralization and the theories of fiscal federalism

Authors
  • Neide César Vargas

Keywords:
Federalismo, governos subnacionais, descentralização.
Abstract
ABSTRACT This article presents the evolution on the conceptions of mainstream Fiscal Federalism, identifying its key concepts and approaches, with an emphasis on the concept of decentralization and the notions of accountability and coordination. It addresses the so-called First-Generation Theory of Fiscal Federalism - or the traditional view of fiscal federalism - which defines fiscal decentralization as its main object. The article then moves on to present the so-called Second-Generation Theory of Fiscal Federalism, highlighting the qualifications that are promoted in the concept of decentralization, under the influence of Public Choice and the New Institutional Economics. These qualifications relate, respectively, to the notions of accountability and coordination. Finally, the article identifies which elements should be preserved in the aformentioned views, and it also points out a few imperative aspects in order to give the first step into a discussion about a more robust theoretical foundation focused on the analysis of subnational governments in Brazil. Key words Federalism; subnational governments; descentralization. Classificação JEL : H77, H71, H72. Artigo recebido em jan. 2010 e aceito para publicação em dez. 2010.
Published
2011-05-24
Section
Artigos
License
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