Session Three: Spending Autonomy Of Sngs Conceptualisation And Measurement, Meeting 2019
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This document presents a new indicator for measuring the spending autonomy of sub-national governments (SNGs). The indicator captures the actual decision-making power of SNGs over public service delivery by analyzing the distribution of decision-making responsibilities across different levels of government in five policy areas. It complements existing measures that focus on financial indicators or the constitutional scope of SNG autonomy. Preliminary results applying the indicator to data from 23 to 32 countries show correlations with other autonomy measures and reveal differences in autonomy levels across countries and sectors. The new indicator provides a more nuanced understanding of SNG autonomy than previous approaches.
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Session Three: Spending Autonomy Of Sngs Conceptualisation And Measurement, Meeting 2019
- 1. SpendingAutonomyofSNGs: ConceptualisationandMeasurement Jaroslaw Kantorowicz Leiden University The Annual Meeting of the Network on Fiscal Relations Across Levels of Government
- 2. What? Spending autonomy/power of SNG = ability of SNGs to shape, determine and change their spending policy
- 3. Attempts so far 1. Financial indicators: Share of SNG expenditure in total expenditure 2. Institutional indicators: Constitutional spending autonomy Policy scope (RAI) Policy scope and effective political discretion (LAI)
- 4. New indicator Captures actual decision-making power over delivery of public goods and services Goes much more in depth in terms of decisions, which are made about delivery of public goods and services Accounts for uncertainty resulting from the fact that perfect measure of SNG autonomy is not available Complements existing measures of SNG autonomy, particularly tax autonomy of SNG
- 5. How? Distribution of decision-making powers (“Who-Does-What”) in five policy areas: Primary education (60 questions, 23 countries) Old-age care (56 questions, 23 countries) Transport (87 questions, 23 countries) Housing (46 questions, 23 countries) Health care (45 questions, 32 countries)
- 6. How? Sub-national levels of government: Regional/state Local Provider Dimensions of autonomy: Managerial (input) Policy Financial (budget) Interventional (output)
- 7. Indicator
- 8. Results Primary education 0.2.4.6.81 LUX ITA NZL CHL FRA KOR MEX CZE LVA IDN NLD POL ZAF RUS DNK NOR EST BRA FIN ESP BEL CAN CHE obsno Provider Local Regional Central Panel A. Autonomy distribution across levels of governments in the education sector
- 9. Results Correlation between dimensions BEL BRA CAN CHE CHL CZE DNK ESPEST FIN FRA IDN ITA KOR LUX LVA MEX NLD NOR NZL POL RUS ZAF 0.2.4.6.81 Managerial(input)autonomy 0 .2 .4 .6 .8 1 Policy autonomy BEL BRA CAN CHE CHL CZEDNK ESPEST FIN FRA IDNITA KOR LUX LVA MEX NLD NOR NZL POLRUS ZAF 0.2.4.6.81 Interventionalautonomy 0 .2 .4 .6 .8 1 Policy autonomy BEL BRA CAN CHE CHL CZE DNK ESPEST FIN FRA IDN ITA KOR LUX LVA MEX NLD NOR NZL POL RUS ZAF 0.2.4.6.81 Managerial(input)autonomy 0 .2 .4 .6 .8 1 Interventional autonomy BEL BRA CAN CHE CHL CZE DNK ESP EST FIN FRA IDN ITA KOR LUX LVA MEX NLDNOR NZL POL RUS ZAF 0.2.4.6.81 Financial(budget)autonomy 0 .2 .4 .6 .8 1 Policy autonomy BEL BRA CAN CHE CHL CZE DNK ESPEST FIN FRA IDN ITA KOR LUX LVA MEX NLD NOR NZL POL RUS ZAF 0.2.4.6.81 Managerial(input)autonomy 0 .2 .4 .6 .8 1 Financial (budget) autonomy BEL BRA CAN CHE CHL CZE DNK ESPEST FIN FRA IDNITA KOR LUX LVAMEX NLD NOR NZL POLRUS ZAF 0.2.4.6.81 Interventionalautonomy 0 .2 .4 .6 .8 1 Financial (budget) autonomy Education sector Correlation between autonomy dimensions
- 10. Results Overall spending autonomy (CPD) 0.2.4.6.81 GRC SVN ISL ISR IRE LUX LTU JPN FRA KOR KAZ NLD EST MEX IND CZE POL ZAF CHL NZL LVA TUR ITA NOR DNK DEU BRA ESP RUS AUT MLT FIN AUS BEL GBR CHE CAN Spending autonomy: composite indicator (country-product dummy)
- 11. Results Overall spending autonomy (BFA) -2-1.5-1-.50.511.52 SVN ISL GRC ISR IRE LTU LUX JPN FRA KOR KAZ IDN MEX CZE NLD EST NZL POL ZAF ITA TUR LVA NOR DNK BRA ESP CHL RUS DEU AUT FIN MLT AUS BEL GBR CHE CAN Spending autonomy: composite indicator (Bayesian factor analysis, imputed values)
- 12. Validity? RAI BEL BRA CAN CHE CHL CZE DNK ESP EST FIN IDN ITA KOR LUXLVA MEX NLDNOR NZL POL RUS 0246 RAIpolicyscope 0 .2 .4 .6 Regional spending autonomy (avg. of four sectors) BEL CAN CHE CHL CZE DNK ESP EST FIN ITA LUXLVA MEX NLDNOR NZL POL 0246 RAIpolicyscope 0 .2 .4 .6 Regional spending autonomy (avg. of five sectors) BEL BRA CANCHE CHL CZE DNK ESP EST FIN IDN ITA KOR LUX LVA MEX NLD NOR NZL POL RUS 010203040 RAIoverallindex 0 .2 .4 .6 Regional spending autonomy (avg. of four sectors) BEL CANCHE CHL CZE DNK ESP EST FIN ITA LUX LVA MEX NLD NOR NZL POL 010203040 RAIoverallindex 0 .2 .4 .6 Regional spending autonomy (avg. of five sectors) Correlation between regional spending autonomy and RAI indicators
- 13. Validity? LAI BEL CHE CZE DNK ESP EST FIN ITA LUX LVANLD NOR POL 01234 LAIpolicyscope 0 .2 .4 .6 Local spending autonomy (avg. of four sectors) BEL CHE CZE DNK ESP EST FIN ITA LUX LVANLD NOR POL 01234 LAIpolicyscope 0 .2 .4 .6 Local spending autonomy (avg. of five sectors) BEL CHE CZE DNK ESP EST FIN ITA LUX LVA NLD NOR POL 0123 LAIeffectivepoliticaldiscretion 0 .2 .4 .6 Local spending autonomy (avg. of four sectors) BEL CHE CZE DNK ESP EST FIN ITA LUX LVA NLD NOR POL 0123 LAIeffectivepoliticaldiscretion 0 .2 .4 .6 Local spending autonomy (avg. of five sectors) BEL CHE CZE DNK ESP EST FIN ITA LUX LVA NLD NORPOL 304050607080 LAIoverallindex 0 .2 .4 .6 Local spending autonomy (avg. of four sectors) BEL CHE CZE DNK ESP EST FIN ITA LUX LVA NLD NORPOL 304050607080 LAIoverallindex 0 .2 .4 .6 Local spending autonomy (avg. of five sectors) Correlation between local spending autonomy and LAI indicators
- 15. Thank you for your attention j.j.kantorowicz@fgga.leidenuniv.nl