Decentralised Provision of Quasi-private Goods: The Case of Colombia

Publicado en

  • Economic Modelling

Resumen

  • This paper quantifies the welfare effects of decentralisation in Colombia, using a multiregional CGE model.We investigate to what extent will the Colombian Population be better off when goods such as health and education, are delivered locally as against centrally. A provision scheme based on the median voter is consided.According to the results, the provision of health and education by regional governments improves the welfare of the Colombian Population as a whole, since regional governments provide goods and services in a way that better caters to local preferences. More importantly,these welfare gains vary from 1.3% to 2.3% of GDP, a substantial magnitude especially when compared with the efficiency gains associated to the tax reforms of the early nineties.

fecha de publicación

  • 2005

Página inicial

  • 683

Última página

  • 706

Volumen

  • 22

Issue

  • 4