Is fiscal decentralization a seasonal illusion? Evidence from Korean local governments

초록

In this paper, we suggest that the extent to which local governments acquire greater fiscal autonomy is determined by local officials' pursuit of re-election, as well as the corresponding fiscal response from the central government. Using Korean local government data, we find a pattern that the degree of fiscal decentralization is lowest during the election year and increases thereafter. Our findings imply that fiscal decentralization is more of a seasonally repeating phenomena than a structural shift towards better responsibility to the local needs.

키워드