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:: Volume 25, Number 82 (quartery journal of Economic Research and Policies 2017) ::
3 2017, 25(82): 111-137 Back to browse issues page
Estimation of Nonlinear Effects of Fiscal Decentralization on Provincial Government Size in Iran (Cup-FM Approach)
abolghasem golkhandan *
, golkhandana@gmail.com
Abstract:   (61 Views)

 
This paper investigates nonlinear effects of fiscal decentralization (from two perspectives: expenditure fiscal decentralization and revenue fiscal decentralization) on provincial government size by using statistical and economic information for 30 provinces of Iran during the period 2002-2012. For this purpose, we use control variables such as GDP per capita, trade, and population. This research emphasizes cross-dependency and using the Continuously-Updated and Fully-Modified Method (Cup-FM) econometric methods (Cup-FM) (presented by Bai et al. (2009)). The results show that the effect of fiscal decentralization indicators on the size of the provincial government is in the form of an Inverted U-shaped curve: in a way that the provinces lie on the ascending sector of this curve. Furthermore, estimated parameters of the control variables indicate GDP per capita, trade and population have a positive and significant impact on the provincial government size.
 
 

Keywords: Fiscal Decentralization, Provincials Government Size, Leviathan Hypothesis, Continuously-Updated and Fully-Modified Method (Cup-FM).
Full-Text [PDF 1254 kb]   (35 Downloads)    
Type of Study: Research | Subject: General
Received: 2016/09/20 | Accepted: 2017/09/10 | Published: 2017/09/10
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golkhandan A. Estimation of Nonlinear Effects of Fiscal Decentralization on Provincial Government Size in Iran (Cup-FM Approach) . 3. 2017; 25 (82) :111-137
URL: http://qjerp.ir/article-1-1576-en.html
Volume 25, Number 82 (quartery journal of Economic Research and Policies 2017) Back to browse issues page
فصلنامه پژوهشها و سیاستهای اقتصادی Journal of Economic Research and Policies
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