Global Tendencies to Decentralization and the Provision of Environmental, Educational and Health Services in the Context of Developing Economy

Oktyabrina Dmitrievna Khaykhadaeva¹, Viktor Sergeevich Potaev¹, Olga Andreevna Osodoeva², Viktoriya Matveevna Baginova² and Irina Arkhipovna Sharaldaeva²

¹Buryat State University, Buryatia, 670000, Ulan-Ude, Smolina Street, 24a

²East Siberia State University of Technology and Management, Buryatia, 670013, Ulan-Ude, Kluchevskaya Street, 40B.

DOI : http://dx.doi.org/10.13005/bbra/2175

ABSTRACT: In recent decades, there have been clear global tendencies towards decentralization, and rapid growth in the autonomy and responsibilities of subnational governments. As a result of decentralization, a large variety of systems emerged, with different degrees of fiscal, administrative, and political powers given to subnational governments. But what are the arguments for decentralization? Do these arguments work in all systems and circumstances? In Tiebout’s approach, different local governments suggest different tax-expenditure bundles and mobile citizens, the consumer-voters, are supposed to allocate themselves in accordance with their preferences. The Tiebout model is very influential in the contemporary public finance field, however, surprisingly, there have only been a few direct tests of this theory. This paper is devoted to the direct examination of the Tiebout model in the case of the Bayandai district (Irkutsk oblast, Russia).

KEYWORDS: Decentralization; provision of public goods; residents; preferences; municipality

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