What is it about?

Theere is a positive effect of fiscal autonomy on municipal education in Chile . Sin this autonomy is very unevenly distributed across municipal governments, this leads to the conclusion that; i) selective decentralization is a better option relative to an all across the borad decentralization strategy and, ii) well designed and effective fiscal equalization mechanisms are a fundamental policy tool.

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Why is it important?

Because there is an active debate en Chile know, regarding the enforcement af a reacently passed Law, accroding to which existing public municipal schools, will be handed over to newly created local govenment districts.


Our findings suggest that in all areas of government, there might be space to find specific sub national jurisdictions which are good in running certain public services. Nontheless, public resources will produce a Pareto superior output if only some of these jurisdictions (most capable ones) are given more responsability , whereas in other cases, the national government might be in charge.

Leonardo Letelier-S
Universidad de Chile

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This page is a summary of: Education and fiscal decentralization. The case of municipal education in Chile, Environment and Planning C Politics and Space, April 2018, SAGE Publications, DOI: 10.1177/2399654418761888.
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