Mali yerelleşme ve mali disiplin

ABSTRACTFISCAL DECENTRALIZATION AND FISCAL DISCIPLINEÇakır, NidaMaster of EconomicsSupervisor: Assist. Prof. Bilin NeyaptıSeptember 2006In this thesis, the effects of fiscal procedures, fiscal centralization andfiscal decentralization, on fiscal discipline are analyzed in a theoretical framework.A model of two optimization problems is established: central government?soptimization problem and local government?s optimization problem representing thetwo fiscal procedures; fiscal centralization and fiscal decentralization respectively.Comparative static analysis is performed, and moreover ambiguous results arecalibrated. Our results indicate that in fiscal decentralization fiscal disciplineincreases with the number of localities. Furthermore, the portion that goes to thepool of the central government has a positive effect on the size of redistribution infiscal centralization, but it has a negative effect in fiscal decentralization. Similarly,whereas income tax rate affects the size of redistribution positively in fiscalcentralization, it has a negative effect in fiscal decentralization.Keywords: Fiscal Decentralization, Fiscal Disciplineiii