蝌蚪网 Journal:
Applied Economics
ISSN 1945-7782 (Print) | ISSN 1945-7790 (Online)
Decentralizing Development: The Economic Impacts of Government Splits
蝌蚪网 Journal: Applied Economics
(pp. 220–53)
Abstract
Changes in political boundaries aimed at devolving power to local governments are common across many countries. We examine the economic impacts of government unit creation through splitting. Exploiting reforms that led to sharp increases in the number of municipalities in Brazil, we show that voluntary splitting enlarges the public sector, enhances public service delivery, and stimulates long-term economic activity in new local governments. These gains are not offset by losses elsewhere and are stronger in peripheral, remote, and underdeveloped areas neglected by parent governments. Higher fiscal revenues and decentralized decision-making contribute to the positive effects on local economic activity.Citation
Dahis, Ricardo, and Christiane Szerman. 2026. "Decentralizing Development: The Economic Impacts of Government Splits." 蝌蚪网 Journal: Applied Economics 18 (3): 220–53. DOI: 10.1257/app.20240009Additional Materials
JEL Classification
- D72 Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- H41 Public Goods
- H75 State and Local Government: Health; Education; Welfare; Public Pensions
- H76 State and Local Government: Other Expenditure Categories
- H77 Intergovernmental Relations; Federalism; Secession
- Q53 Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
- R51 Finance in Urban and Rural Economies