H77 - Intergovernmental Relations; Federalism; SecessionReturn

The article investigates the impact of fiscal decentralisation on a long-term economic development. The aim of the article is to examine and quantify influence of fiscal decentralisation on output in the European Union in the period 1995-2012. The empirical evidence (based on data taken from OECD Fiscal Decentralisation Database and OECD) is performed on a panel which contains 21 countries. Methodology is applied in accordance to Blöchliger (2013), but explanatory variables are not examined in individual regressions, but the analysis newly uses Generalized Method of Moments (Dynamic Panel Data). For a model specification, Dynamic Panel Data Model Wizard is applied. Results of dynamic panel analysis suggest positive impact of expenditure decentralisation, negative effect of revenue decentralisation and negative but statistically insignificant impact of tax decentralisation on economic development. Based on the empirical results, the study suggests that sub-central governments should be given more autonomy and authority in fiscal expenditure matters. These findings are interesting as central governments must often face to tendence of sub-central governments to increase revenue fiscal decentralisation over the last years.

This paper deals with the field of road infrastructure. The aim of this paper is to determine whether the extent of roads in the municipality, the population of the municipality, traffic intensity in the municipality or the aspect of time affect municipal expenditures in the field of road infrastructure. The influence of these variables is studied in this paper by means of correlation and regression analysis between the extent of roads or the number of inhabitants and municipal expenditures in the field of road infrastructure converted to the unit of the extent. The analysis is performed with respect to all communities regardless of their size, in terms of size categories of municipalities and in terms of time horizon. The paper evaluates whether it is appropriate to use the road infrastructure as a criterion for the Czech tax assignment system. The analysis is based on the example of the Zlín Region municipalities.