Development of Local Public Finance in Europe

Friedrich, Peter; Gwiazda, Joanna; Nam, Chang Woon

doi:10.2139/ssrn.486065

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Development of Local Public Finance in Europe

55 Pages Posted: 28 Jan 2004

See all articles by Peter Friedrich

Peter Friedrich

University of the Federal Armed Forces Munich

Chang Woon Nam

CESifo (Center for Economic Studies and Ifo Institute); Ifo Institute, Germany; University of Applied Management (UAM)

Date Written: December 2003

Abstract

This paper investigates the development of local public finance in Germany, Switzerland, Poland and the United Kingdom. In this context important characteristics of municipal expenditures and revenues are examined in these countries. Differences in government structure (i.e. unitary or federal) do not appear to have a crucial role for municipal finance. The ways to protect local fiscal autonomy are discussed in the framework of the vertical fiscal equalisation system. In particular the application of the principle of parallel fiscal development between a state and its municipalities is examined.

Keywords: municipal finance, fiscal autonomy and decentralisation, intergovernmental

JEL Classification: H7, H2, H4, H6, H8

Suggested Citation: Suggested Citation

Friedrich, Peter and Gwiazda, Joanna and Nam, Chang Woon, Development of Local Public Finance in Europe (December 2003). Available at SSRN: https://ssrn.com/abstract=486065 or http://dx.doi.org/10.2139/ssrn.486065