Skip to main content

Abstract

It is tempting to talk about “decentralization” as if it were simple: a technical decision to grant more authority to regional or local governments, with the objective of aligning incentives, power, and information a bit more efficiently.But decentralization is far from simple. In fact, it is not a policy, it is not just a technocratic decision, and it does not have reliable and easily predictable effects. In effect, one of the reasons why health policy specialists, economists, and political scientists have had such difficulty with the effects of decentralization on health policy and, more generally, on the welfare state is that they have paid too little attention to the specific institutional pathways in which decentralization does and does not matter.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

eBook
USD 16.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 16.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 54.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Similar content being viewed by others

References

  • Adolph, C., da Fonseca, E. M. and Greer, S. L. (2012). Allocation of Authority in European Health Policy. Social Science and Medicine 75 (9), pp. 1595–1603.

    Article  Google Scholar 

  • Baicker, K. and Skinner, J. (2010). Health care spending growth and the future Of U.S.tax rates. Prepared for the tax policy and the economy conference, 23 September 2010.

    Google Scholar 

  • Baicker, K. and Skinner, J. (2010). Health care spending growth and the future Of U.S.tax rates. Prepared for the tax policy and the economy conference, 23 September 2010.

    Google Scholar 

  • Banting, Keith G. (2006). Social citizenship and federalism: Is the federal welfare state a contradiction in terms. In Scott L. Greer (Ed.) Territory, Democracy, and Justice (pp. 44–66). Basingstoke: Palgrave Macmillan.

    Google Scholar 

  • Banting, Keith G. and Corbett, Stan (2002). Health policy and federalism: An introduction. In Keith G. Banting and Stan Corbett (Eds.) Health Policy and Federalism: A Comparative Perspective on Multi-Level Governance (pp. 1–37). Montreal and Kingston:McGill-Queens University Press.

    Google Scholar 

  • Banting, Keith and Costa-Font, Joan (2010). Decentralization, welfare, and social citizenship in contemporary democracies. Environment and Planning C: Government and Policy, 28 (3), pp. 381–38.

    Article  Google Scholar 

  • Baumgartner, F. R. and Jones, B. D. (1993). Agendas and Instability in American Politics. Chicago: University of Chicago Press.

    Google Scholar 

  • Bednar, J. (2009). The Robust Federation: Principles of Design. Cambridge, MA: Cambridge University Press.

    Google Scholar 

  • Bednar, J. (2011). The political science of federalism. Annual Review of Law and Social Science, 7 (1), pp. 269–288.

    Article  Google Scholar 

  • Beramendi, P. (2007). Federalism. In C. Boix and S. C. Stokes (Eds.) The Oxford Handbook of Comparative Politics (pp. 752–781). Oxford: Oxford University Press.

    Google Scholar 

  • Boadway, R. and Shah, A. (2009). Fiscal Federalism: Principles and Practice of Multi-Order Governance. Cambridge: Cambridge University Press.

    Book  Google Scholar 

  • Bonoli, G. (2000). The Politics of Pension Reform: Institutions and Policy Change inWestern Europe. Cambridge: Cambridge University Press.

    Book  Google Scholar 

  • Bordignon, M. and Turati, G. (2009). Bailing out expectations and public health expenditure, Journal of Health Economics, Elsevier, 28 (2), pp. 305–321.

    Google Scholar 

  • Bossert, T. (1998). Analyzing the decentralization of health systems in developing countries: Decision space, innovation and performance. Social Science and Medicine, 47 (10), pp. 1513–1527.

    Article  Google Scholar 

  • Boushey, G. (2010). Policy Diffusion Dynamics in America. Cambridge: Cambridge University Press.

    Book  Google Scholar 

  • Boushey, G. (2010). Policy Diffusion Dynamics in America. Cambridge: Cambridge University Press.

    Google Scholar 

  • Brenan, G. and Buchanan, J. (1980). Power to Tax: Analytical Foundations of a Fiscal Constitution, New York: Cambridge University Press.

    Google Scholar 

  • Breton, A. (1996). Competitive Governments: An Economic Theory of Politics and Public Finance. New York: Cambridge University Press.

    Google Scholar 

  • Campante, F. R. and Do, Q. A. (2012). Isolated Capital Cities, Accountability and Corruption: Evidence from US States. Cambridge, MA: Harvard Kennedy School of Government.

    Google Scholar 

  • Castles, F. G. (1999). Decentralization and the post-war political economy. European Journal of Political Research, 36 (1), pp. 27–53.

    Google Scholar 

  • Cornell, S. E. (2002). Autonomy as a source of ethnic conflict: Caucasian conflicts in theoretical perspective. World Politics, 54 (2), pp. 245–276.

    Article  Google Scholar 

  • Costa-Font, J. (2005). Inequalities in self-reported health within Spanish regional health services: devolution re-examined? International Journal of Health Planning and Management, 20 (1), pp. 41–52.

    Article  Google Scholar 

  • Costa-Font, J. (2009). Simultaneity, asymmetric devolution and economic incentives in Spanish regional elections. Regional and Federal Studies, 19 (1), pp. 165–184.

    Article  Google Scholar 

  • Costa-Font, J. (2010a). Devolution, diversity and welfare reform: long-term care in the ‘Latin Rim’. Social Policy & Administration, 44 (4), pp. 481–494.

    Article  Google Scholar 

  • Costa-Font, J. (2010b). Does devolution lead to regional inequalities in welfare activity? Environment and Planning C: Government and Policy, 28 (3), pp. 435–449.

    Article  Google Scholar 

  • Costa-Font, J. and Moscone, F. (2008). The impact of decentralization and interterritorial interactions on Spanish health expenditure. Empirical Economics, 34 (1), pp. 167–184.

    Article  Google Scholar 

  • Costa-Font, J. and Puig-Junoy, J. (2007). Institutional change, innovation and regulation failure: evidence from the Spanish drug market. Policy and politics, 35 (4), pp. 701–718.

    Article  Google Scholar 

  • Costa-Font, J. and Rico, A. (2006a). Devolution and the interregional inequalities in health and healthcare in Spain. Regional Studies, 40 (8), pp. 1–13.

    Article  Google Scholar 

  • Costa-Font, J. and Rico, A. (2006b). Vertical competition in the Spanish National Health System (NHS). Public Choice, 128 (3–4), pp. 477–498.

    Article  Google Scholar 

  • Costa-Font, J., Salvador-Carulla, L., Cabases, J., Alonso, J. and McDaid, D. (2011). Tackling neglect and mental health reform in a devolved system of welfare governance. Journal of Social Policy, 40, pp. 295–312.

    Article  Google Scholar 

  • Costa-Font, J., Salvador-Carulla, L., Cabases, J., Alonso, J. andMcDaid, D. (2011). Tackling neglect and mental health reform in a devolved system of welfare governance. Journal of Social Policy, 40, pp. 295–312.

    Google Scholar 

  • Cox, G. W. (2009). Swing voters, core voters, and distributive politics. In I. Shapiro, S. C. Stokes, E. J.Wood, and A. S. Kirshner (Eds.), Political Representation (pp. 342–57).Cambridge, MA: Cambridge University Press.

    Google Scholar 

  • Crivelli, E., Leive, A. and Stratmann, T. (2010). Subnational health spending and soft budget constraints in OECD countries. IMF Working Paper, 10/147.

    Google Scholar 

  • DiMaggio, P. J. and Powell, W. W. (1991). The iron cage revisited: Institutional isomorphism and collective rationality in organization fields. In W. W. Powell and P. J. DiMaggio (Eds.), The New Institutionalism in Organizational Analysis (pp. 63–82).Chicago: University of Chicago Press.

    Google Scholar 

  • Fierbeck, Katherine (2011). The dialectics of law and policy: Federal health policy in Canada and the EU. In Finn Laursen (Ed.), The EU and Federalism (pp. 133–154).

    Google Scholar 

  • Farnham: Ashgate. Gerring, J. and Thacker, S. C. (2008). A Centripetal Theory of Democratic Governance.Cambridge: Cambridge University Press.

    Google Scholar 

  • Gibson, E. L. (2005). Boundary control: Subnational authoritarianism in democracy countries. World Politics, 58, pp. 101–132.

    Article  Google Scholar 

  • Greer, S. L. (2004). Territorial Politics and Health Policy: UK Health Policy in Comparative Perspective. Manchester: Manchester University Press.

    Google Scholar 

  • Greer, S. L. (2006). The politics of divergent policy. In S. L. Greer (Ed.), Territory, Democracy, and Justice: Regionalism and Federalism in Western Democracies (pp. 157–74).Basingstoke: Palgrave Macmillan.

    Google Scholar 

  • Greer, S. L. (2007). Nationalism and Self-Government: The Politics of Autonomy in Scotland and Catalonia. Albany: State University of New York Press.

    Google Scholar 

  • Greer, S. L. (2008). A very English institution: Central and local in the English NHS.In R. Hazell (Ed.) The English Question. (pp. 194–219). Manchester: Manchester University Press

    Google Scholar 

  • Greer, S. L. (2010a). Devolution and Health: Structure, Process and Outcome since 1998. In G. Lodge and K. Schmuecker (Eds.) Devolution in Practice 3. (pp. 141–165).London: IPPR.

    Google Scholar 

  • Greer, S. L. (2010b). Territorial Politics in Hard Times: TheWelfare State Under Pressure in Germany, Spain and the United Kingdom. Environment and Planning (C), 28 (3), pp. 405–419.

    Article  Google Scholar 

  • Greer, S. L. and Jacobson, P. D. (2010). Health policy and federalism. Journal of Health Politics, Policy and Law, 35 (2), pp. 203–226.

    Article  Google Scholar 

  • Grindle, M. S. (2009). Going Local: Decentralization, Democratization, and the Promise of Good Governance. Princeton: Princeton University Press.

    Book  Google Scholar 

  • Hacker, J. S. (2004). Reform without change, change without reform: The politics of U.S. Health policy reform in cross-national perspective. In M. A. Levin and M. Shapiro (Eds.), Transatlantic Policymaking in an Age of Austerity: Diversity and Drift (pp. 13–63). Washington, DC: Georgetown University Press.

    Google Scholar 

  • Hansen, Susan B. (2006). Globalization and the Politics of Pay. Washington, DC:Georgetown University Press.

    Google Scholar 

  • Hayek, F. (1937). Economics and knowledge. Economica, 4, pp. 33–54.

    Google Scholar 

  • Heclo, H. (1978). Issue networks and the executive establishment. In A. King (Ed.), The New American Political System (pp. 87–124). Washington, DC: American Enterprise Institute.

    Google Scholar 

  • Hicks, A. (1999). Social Democracy and Welfare Capitalism: A Century of Income Security Politics. Ithaca: Cornell University Press.

    Google Scholar 

  • Hirschman, Albert. 1970. Exit, Voice and Loyalty: Responses to Decline in Firms, Organizations and States. Cambridge, MA: Harvard University Press.

    Google Scholar 

  • Hopkin, J (2009). Party matters: Devolution and party politics in Britain and Spain.Party Politics, 15, pp. 179–198.

    Article  Google Scholar 

  • Hopkin, J. and Bradbury, J. (2006). British statewide parties and multilevel politics. Publius, 36 (1), pp. 135–152.

    Article  Google Scholar 

  • Huber, E. and Stephens, J. D. (2001). Development and Crisis of the Welfare State: Parties and Policies in Global Markets. Chicago: University of Chicago Press.

    Book  Google Scholar 

  • Huber, E., Ragin, C. and Stephens, J. D. (1993). Social democracy, Christian democracy, constitutional structure, and the welfare state. American Journal of Sociology, 99 (3), pp. 711–749.

    Article  Google Scholar 

  • Immergut, Ellen M. (1992). The rules of the game: The logic of health policy-making in France, Switzerland, and Sweden. In Sven Steinmo, Kathleen Thelen and Frank Longstreth (Eds.) Structuring Politics: Historical Institutionalism in Comparative Analysis (pp. 57–89). Cambridge: Cambridge University Press.

    Chapter  Google Scholar 

  • Jordan, G. and Richardson, J. J. (1982). The British policy style or logic of negotiation? In J. J. Richardson (Ed.), Policy Styles in Western Europe (pp. 80–110). London: George Allen & Unwin.

    Google Scholar 

  • Kingdon, J. W. (1995). Agendas, Alternatives, and Public Policies. New York: HarperCollins.

    Google Scholar 

  • Kingdon, J. W. (1995). Agendas, Alternatives, and Public Policies. New York: HarperCollins.

    Google Scholar 

  • Koethenbuerger, M. (2008). Revisiting the “Decentralization Theorem” – On the role of externalities. Journal of Urban Economics, 64, pp. 116–122.

    Article  Google Scholar 

  • Laffin, M. (2007). Comparative British central–local relations: Regional centralism, governance and intergovernmental relations. Public Policy and Administration, 22 (1), pp. 74–91.

    Article  Google Scholar 

  • Laffont, J. J. (2000). Incentives and Political Economy. Oxford: Oxford University Press.

    Google Scholar 

  • Lancaster, T. D. and Hicks, A.M. (2000). The impact of federalism and neo-corporatism on economic performance: An analysis of eighteen OECD countries. In U. Wachendorfer-Schmidt (Ed.), Federalism and Political Performance (pp. 228–241). Abingdon: Routledge.

    Google Scholar 

  • Lane, J. E. and Ersson, S. (2005). The riddle of federalism: Does federalism impact on democracy? Democratisation, 12, pp. 163–182.

    Article  Google Scholar 

  • Levaggi, R. and Zanola, R. (2007). Patients’ migration across regions: The case of Italy. Applied Economics, 36 (16). 1751–1757.

    Article  Google Scholar 

  • Levy, Jacob T. (2007). Federalism, liberalism, and the separation of loyalties. American Political Science Review, 101, pp. 459–477.

    Article  Google Scholar 

  • Lopez-Casasnovas, Guillem, Costa-i-Font, Joan and Planas, Ivan (2005). Diversity and regional inequalities in the Spanish system of health care services. Health Economics, 14 (S1), pp. 221–235.

    Article  Google Scholar 

  • Maioni, A. (1998). Parting at the Crossroads: The Emergence of Health Insurance in the United States and Canada. Princeton: Princeton University Press.

    Google Scholar 

  • Mellett, R. (2009). A Principles-Based Approach to the Barnett Formula. Political Quarterly, 80(1), pp. 76–83.

    Article  Google Scholar 

  • Miller, E. A. and Banaszak-Holl, J. (2005). Cognitive and normative determinants of state policymaking behavior: Lessons from the sociological institutionalism. Publius, 35 (2), pp. 191–216.

    Article  Google Scholar 

  • Oates, W. E. (1972). Fiscal Federalism. New York: Harcourt Brace Jovanovich.

    Google Scholar 

  • Oates, W. E. (1985). Searching for the Leviathan: An empirical study. American Economic Review, 75, pp. 748–757.

    Google Scholar 

  • Obinger, H., Leibfried, S. and Castles, F. G. (2005). Federalism and theWelfare State: New World and European Experiences. Cambridge: Cambridge University Press.

    Book  Google Scholar 

  • O’Dwyer, C. and Ziblatt, D. (2006). Does decentralisation make government more efficient and effective? Commonwealth and Comparative Politics, 44 (3), pp. 326–343.

    Article  Google Scholar 

  • OECD (2009). Explaining The Sub-National Tax-Grants Balance In OECD Countries. OECD Network on Fiscal Relations Across Levels of Government.

    Google Scholar 

  • Peterson, P. (1981). City Limits. Chicago: University of Chicago Press.

    Book  Google Scholar 

  • Peterson, P. (1995). The Price of Federalism. Washington, DC: Brookings Institution.

    Google Scholar 

  • Peterson, P. (1981). City Limits. Chicago: University of Chicago Press. Peterson, P. (1995). The Price of Federalism. Washington, DC: Brookings Institution.

    Google Scholar 

  • Pettit, P. (1997). Republicanism: A Theory of Freedom and Governance. Oxford: Oxford University Press.

    Google Scholar 

  • Piperno, S. (2000). Fiscal Decentralisation in Italy: Some Lessons, mimeo.

    Google Scholar 

  • Poirier, J. (2001). Pouvoir normatif et protection sociale dans les fédérations multinationales. Canadian Journal of Law and Society/Revue Canadienne Droit Et Societé, 16 (2), pp. 137–171.

    Article  Google Scholar 

  • Rhodes, R. A. W. (1981). Control and Power in Central-Local Government Relations. Westmead: Gower/Social Sciences Research Council.

    Google Scholar 

  • Richardson, J. J. (2000). Government, interest groups and policy change. Political Studies, 48, pp. 1006–1025.

    Article  Google Scholar 

  • Riker, W. (1964). Federalism: Origins, Operation, Significance. Boston: Little, Brown.

    Google Scholar 

  • Riker, W. (1982). Liberalism Against Populism: A Confrontation Between the Theory of Democracy and the Theory of Social Choice. Prospect Heights, IL: Waveland.

    Google Scholar 

  • Rodden, J. A. (2005). Hamilton’s Paradox: The Promise and Peril of Fiscal Federalism. Cambridge: Cambridge University Press.

    Book  Google Scholar 

  • Salmon, P. (1987). Decentralisation as an Incentive Scheme. Oxford Review of Economic Policy, 3 (2), pp. 24–43.

    Article  Google Scholar 

  • Schneider, A. (2006). Who gets what from whom: The impact of decentralisation on tax capacity and social spending. Commonwealth and Comparative Politics, 44 (3), pp. 344–369.

    Article  Google Scholar 

  • Snyder, R. (2001). Scaling down: The subnational comparative method. Studies in Comparative International Development, 36 (1), pp. 93–110.

    Article  Google Scholar 

  • Stegarescu, D. (2005). Public sector decentralisation: Measurement concepts and recent international trends. Fiscal Studies, 26 (3), pp. 301–333.

    Article  Google Scholar 

  • Stepan, A. (2001). Arguing Comparative Politics. Oxford: Oxford University Press.

    Google Scholar 

  • Stigler, G. (1957). Tenable range of functions of local government. In Federal Expenditure Policy for Economic Growth and Stability (pp. 213–219). US Congress (ed) Washington, DC: Joint Economic Committee, Subcommittee on Fiscal Policy.

    Google Scholar 

  • Swank, D. (2001). Political institutions and welfare state restructuring: The impact of institutions on social policy change in developed democracies. In P. Pierson (Ed.), The New Politics of the Welfare State (pp. 197–236). Oxford: Oxford University Press.

    Chapter  Google Scholar 

  • Swank, D. (2002). Global Capital, Political Institutions, and Policy Change in developed Welfare States. Cambridge: Cambridge University Press.

    Book  Google Scholar 

  • Tiebout, C. M. (1956). A Pure Theory of Local Expenditure. Journal of Political Economy, 64, pp. 416–424.

    Article  Google Scholar 

  • Treisman, Daniel S. (2007). The Architecture of Government: Rethinking Political Decentralization. Cambridge: Cambridge University Press.

    Book  Google Scholar 

  • Trench, A. (2006). Intergovernmental relations: In search of a theory. In S. L. Greer (Ed.), Territory, Democracy and Justice: Regionalism and Federalism in Western Democracies (pp. 224–256). Basingstoke: Palgrave Macmillan.

    Google Scholar 

  • van Biezen, I. and Hopkin, J. (2006). Party organisation in multi-level contexts. In D.Hough and C. Jeffery (Eds.), Devolution and Electoral Politics (pp. 14–36). Manchester: Manchester University Press.

    Google Scholar 

  • von Hayek, F. A. (1992). Individualism and Economic Order. Chicago: University of Chicago Press.

    Google Scholar 

  • Walker, J. L. J. (1989). Policy communities as global phenomena. Governance, 2, pp. 1–5.

    Article  Google Scholar 

  • Watts, R. L. (2000). The Spending Power in Federal Systems: A Comparative Analysis. Kingston, ON: Queens University Institute of Intergovernmental Relations.

    Google Scholar 

  • Watts, R. L. (2006). Origins of cooperative and competitive federalism. In S. L. Greer (Ed.), Territory, Democracy and Justice (pp. 201–224). Basingstoke: Palgrave Macmillan.

    Google Scholar 

  • Weingast, B. (1995). The economic role of political institutions: Market-Preserving federalism and economic development. Journal of Law, Economics and Organization, 11 (1), pp. 1–31.

    Google Scholar 

  • Weingast, B. (2009). “Second Generation Fiscal Federalism: The Implications of Fiscal Incentives”. Journal of Urban Economics, 65 (3), pp. 279–293.

    Article  Google Scholar 

Download references

Authors

Editor information

Editors and Affiliations

Copyright information

© 2013 Joan Costa-Font and Scott L. Greer

About this chapter

Cite this chapter

Costa-Font, J., Greer, S.L. (2013). Territory and Health: Perspectives from Economics and Political Science. In: Costa-Font, J., Greer, S.L. (eds) Federalism and Decentralization in European Health and Social Care. Palgrave Macmillan, London. https://doi.org/10.1057/9781137291875_2

Download citation

Publish with us

Policies and ethics