01982cas a2200253 a 4500 AALejournalIMF017530 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475588606 1018-5941 BD-DhAAL BD-DhAAL Sow, Mousse. Fiscal Decentralization and Fiscal Policy Performance / Mousse Sow, Ivohasina Razafimahefa. Washington, D.C. : International Monetary Fund, 2017. 1 online resource (29 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper explores the impact of fiscal decentralization on fiscal policy performance in a large sample of advanced and developing economies. The findings suggest that a larger share of decentralized expenditure is associated with a stronger fiscal balance; however, fiscal decentralization can lead to more pro-cyclical fiscal policy. Thus, the design and pace of fiscal decentralization need to be tailored to the specificities of the economy. Countries that have already established strong accountablity and budget management capacity at the local level can benefit from fiscal decentralization. In contrast, in economies prone to large volatility from internal and external shocks, the central government may need to retain a sufficient share of expenditure and revenue to conduct counter-cyclical policies. Finally, the pace of expenditure and revenue decentralization should be aligned. Mode of access: Internet Razafimahefa, Ivohasina. IMF Working Papers; Working Paper ; No. 2017/064 Full text available on IMF http://elibrary.imf.org/view/journals/001/2017/064/001.2017.issue-064-en.xml IMF e-Library