The economic case for further fiscal decentralisation to Scotland: theoretical and empirical perspectives

David Bell, David Eiser

Research output: Contribution to journalArticle

5 Citations (Scopus)

Abstract

This paper examines the background to calls for further fiscal decentralisation in Scotland in the light of theories of fiscal federalism. In particular, it examines whether spatial differences in preferences, which are central to ‘first generation’ theories of fiscal federalism can be argued to play a central role in the case for granting Scotland further tax and spending powers. ‘Second generation’ theories of fiscal federalism draw attention to the political economy of allocating tax powers to different levels of government. Some of the authors in this strand of theory argue that the case for allocating tax powers to subnational governments can be made in terms of ‘accountability’ – the notion that local politicians can be better held to account for the outcomes of policy actions. Our empirical analysis suggests that there is no clear difference in preferences between Scotland and the rest of the UK along a number of key political dimensions. However, the Scottish parliament enjoys substantially higher levels of trust among the Scottish electorate than does the UK parliament.
LanguageEnglish
PagesR27-R36
Number of pages10
JournalNational Institute Economic Review
Volume233
Issue number1
DOIs
Publication statusPublished - 31 Aug 2015

Fingerprint

Economics
Fiscal decentralization
Scotland
Fiscal federalism
Tax
Parliament
Government
Empirical analysis
Accountability
Politicians
Political economy

Keywords

  • fiscal decentralisation
  • fiscal federalism
  • tax powers
  • devolved powers
  • Scotland
  • Scottish economy

Cite this

@article{3a9c018bf268424c923d7a48f8a7d697,
title = "The economic case for further fiscal decentralisation to Scotland: theoretical and empirical perspectives",
abstract = "This paper examines the background to calls for further fiscal decentralisation in Scotland in the light of theories of fiscal federalism. In particular, it examines whether spatial differences in preferences, which are central to ‘first generation’ theories of fiscal federalism can be argued to play a central role in the case for granting Scotland further tax and spending powers. ‘Second generation’ theories of fiscal federalism draw attention to the political economy of allocating tax powers to different levels of government. Some of the authors in this strand of theory argue that the case for allocating tax powers to subnational governments can be made in terms of ‘accountability’ – the notion that local politicians can be better held to account for the outcomes of policy actions. Our empirical analysis suggests that there is no clear difference in preferences between Scotland and the rest of the UK along a number of key political dimensions. However, the Scottish parliament enjoys substantially higher levels of trust among the Scottish electorate than does the UK parliament.",
keywords = "fiscal decentralisation, fiscal federalism, tax powers, devolved powers, Scotland, Scottish economy",
author = "David Bell and David Eiser",
year = "2015",
month = "8",
day = "31",
doi = "10.1177/002795011523300104",
language = "English",
volume = "233",
pages = "R27--R36",
journal = "National Institute Economic Review",
issn = "0027-9501",
number = "1",

}

The economic case for further fiscal decentralisation to Scotland : theoretical and empirical perspectives. / Bell, David; Eiser, David.

In: National Institute Economic Review, Vol. 233, No. 1, 31.08.2015, p. R27-R36.

Research output: Contribution to journalArticle

TY - JOUR

T1 - The economic case for further fiscal decentralisation to Scotland

T2 - National Institute Economic Review

AU - Bell, David

AU - Eiser, David

PY - 2015/8/31

Y1 - 2015/8/31

N2 - This paper examines the background to calls for further fiscal decentralisation in Scotland in the light of theories of fiscal federalism. In particular, it examines whether spatial differences in preferences, which are central to ‘first generation’ theories of fiscal federalism can be argued to play a central role in the case for granting Scotland further tax and spending powers. ‘Second generation’ theories of fiscal federalism draw attention to the political economy of allocating tax powers to different levels of government. Some of the authors in this strand of theory argue that the case for allocating tax powers to subnational governments can be made in terms of ‘accountability’ – the notion that local politicians can be better held to account for the outcomes of policy actions. Our empirical analysis suggests that there is no clear difference in preferences between Scotland and the rest of the UK along a number of key political dimensions. However, the Scottish parliament enjoys substantially higher levels of trust among the Scottish electorate than does the UK parliament.

AB - This paper examines the background to calls for further fiscal decentralisation in Scotland in the light of theories of fiscal federalism. In particular, it examines whether spatial differences in preferences, which are central to ‘first generation’ theories of fiscal federalism can be argued to play a central role in the case for granting Scotland further tax and spending powers. ‘Second generation’ theories of fiscal federalism draw attention to the political economy of allocating tax powers to different levels of government. Some of the authors in this strand of theory argue that the case for allocating tax powers to subnational governments can be made in terms of ‘accountability’ – the notion that local politicians can be better held to account for the outcomes of policy actions. Our empirical analysis suggests that there is no clear difference in preferences between Scotland and the rest of the UK along a number of key political dimensions. However, the Scottish parliament enjoys substantially higher levels of trust among the Scottish electorate than does the UK parliament.

KW - fiscal decentralisation

KW - fiscal federalism

KW - tax powers

KW - devolved powers

KW - Scotland

KW - Scottish economy

U2 - 10.1177/002795011523300104

DO - 10.1177/002795011523300104

M3 - Article

VL - 233

SP - R27-R36

JO - National Institute Economic Review

JF - National Institute Economic Review

SN - 0027-9501

IS - 1

ER -