Revisiting the link between growth and federalism: A Bayesian model averaging approach

Arbeitspapier

Following the ambiguous results in the literature aimed at understanding the empirical link between fiscal federalism and economic growth, this paper revisits the question using a Bayesian Model Averaging approach. The analysis suggests that the failure to appropriately account for model uncertainty may have previously led to biased estimates. The results from a sample of 23 OECD countries over 1975-2000 indicate that after controlling for unobserved country heterogeneity, there is no robust link, neither positive, nor negative, between output growth and fiscal federalism (measured as sub-national governments' share of own source tax revenue).

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ZEW Discussion Papers ; No. 13-049

Classification and Topics

• Classification: Wirtschaft ; Bayesian Analysis: General ; State and Local Government; Intergovernmental Relations: General ; Institutions and Growth
• Subject: Fiscal Federalism ; Economic Growth ; Bayesian Model Averaging

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Asatryan, Zareh ; Feld, Lars P.
• Event: Veröffentlichung
• (who): Zentrum für Europäische Wirtschaftsforschung (ZEW)
• (where): Mannheim
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/78623
• URN: urn:nbn:de:bsz:180-madoc-343415
• Last update: 10.03.2025, 11:42 AM CET