Fiscal Responsibility and Multi-Level Governance: Bridging the Gap between Policy and Management

Enrico Guarini, Anna Francesca Pattaro

Source Title: Handbook of Research on Sub-National Governance and Development

ISBN13: 9781522516453|ISBN10: 152251645X|EISBN13: 9781522516460

DOI: 10.4018/978-1-5225-1645-3.ch008

MLA

Guarini, Enrico, and Anna Francesca Pattaro. "Fiscal Responsibility and Multi-Level Governance: Bridging the Gap between Policy and Management." Handbook of Research on Sub-National Governance and Development, edited by Eris Schoburgh and Roberta Ryan, IGI Global, 2017, pp. 1-26. https://doi.org/10.4018/978-1-5225-1645-3.ch008

APA

Guarini, E. & Pattaro, A. F. (2017). Fiscal Responsibility and Multi-Level Governance: Bridging the Gap between Policy and Management. In E. Schoburgh & R. Ryan (Eds.), Handbook of Research on Sub-National Governance and Development (pp. 1-26). IGI Global. https://doi.org/10.4018/978-1-5225-1645-3.ch008

Chicago

Guarini, Enrico, and Anna Francesca Pattaro. "Fiscal Responsibility and Multi-Level Governance: Bridging the Gap between Policy and Management." In Handbook of Research on Sub-National Governance and Development, edited by Eris Schoburgh and Roberta Ryan, 1-26. Hershey, PA: IGI Global, 2017. https://doi.org/10.4018/978-1-5225-1645-3.ch008

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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.