Home Subscribe Login Contact Us Search Journal Articles PFM RSS Feed

PFM Articles Search Journal Articles

Single Article: A Counterfactual Analysis of Fiscal Decentralization in Small Countries: The Case of Mauritius

PFM, Vol. 7 No. 2, (2007)

Local government autonomy may be less significant in very small island counties, due to lack of spatial variations in citizen-voters’ preferences. A counterfactual analysis is performed to test efficiency of local expenditure in a small country environment by incorporating the idea of a new institutional arrangement. Empirical analysis utilizing Mauritian data lends support to superiority of local government over central government in providing local services despite very small country size. This result is robust even when the central government is modeled to provide non-uniform local services to recognize spatial variation in preferences. Thus, voter support for local government even in very small countries is rational.

Subscribers: Login to read this article

Guests: Subscribe to PFM, or purchase individual article access for $10.
The article is not available for automatic download. We will email the article to you as a PDF file upon receiving your payment, typically within 24 hours.