Public-policy assumptions regarding sub-national governments' financial behavior are based on economic rationality. Therefore, to achieve fiscal stability at the macro level, central governments use fiscal rules both to constrain the behavior of local policymakers and to resolve deficit/debt biases. Using the Italian fiscal governance system as an illustrative example, this chapter considers both the tensions derived from achieving fiscal responsibility at the national level in a decentralized environment and the difficulties of maintaining adequate performance at the local government level. It is argued that the public management perspective can be helpful not only at the micro level but also at the macro level in developing public policies to promote fiscal stability. It is suggested that public policy should adopt a more holistic approach toward fiscal responsibility in multi-level governance environments. Such an approach requires a deep understanding of the determinants of financial viability of public sector organizations.

Guarini, E., Pattaro, A. (2017). Fiscal responsibility and multi-level governance: Bridging the gap between policy and management. In E. Schoburgh, R. Ryan (a cura di), Handbook of Research on Sub-National Governance and Development (pp. 167-192). Hershey, PA : IGI Global [10.4018/978-1-5225-1645-3.ch008].

Fiscal responsibility and multi-level governance: Bridging the gap between policy and management

GUARINI, ENRICO
Primo
;
2017

Abstract

Public-policy assumptions regarding sub-national governments' financial behavior are based on economic rationality. Therefore, to achieve fiscal stability at the macro level, central governments use fiscal rules both to constrain the behavior of local policymakers and to resolve deficit/debt biases. Using the Italian fiscal governance system as an illustrative example, this chapter considers both the tensions derived from achieving fiscal responsibility at the national level in a decentralized environment and the difficulties of maintaining adequate performance at the local government level. It is argued that the public management perspective can be helpful not only at the micro level but also at the macro level in developing public policies to promote fiscal stability. It is suggested that public policy should adopt a more holistic approach toward fiscal responsibility in multi-level governance environments. Such an approach requires a deep understanding of the determinants of financial viability of public sector organizations.
Capitolo o saggio
public governance; public financial management; fiscal responsibility; multi-level governance; financial viability; public sector organizations.
English
Handbook of Research on Sub-National Governance and Development
9781522516453
Release Date: November, 2016 Copyright: © 2017
Guarini, E., Pattaro, A. (2017). Fiscal responsibility and multi-level governance: Bridging the gap between policy and management. In E. Schoburgh, R. Ryan (a cura di), Handbook of Research on Sub-National Governance and Development (pp. 167-192). Hershey, PA : IGI Global [10.4018/978-1-5225-1645-3.ch008].
Guarini, E; Pattaro, A
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10281/140082
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