Shifting vertical power relations
BORIS DOI
Subtitle
four empirical studies on the fiscal effects of the Swiss federal reform 2008 and the Belgian federalisation 1993
Abstract
The dissertation deals with the research question of how the Swiss federal reform 2008
(NFA) has changed vertical fiscal power relations in Switzerland and what can be learned
from these findings for institutional design in federations in general. The main part of this
cumulative dissertation is composed of four empirical studies, each of them contributing
to the overall research question. The first study in chapter 2 takes a macro-perspective
and focuses on the impact of the NFA on subnational fiscal autonomy. In the second study
in chapter 3, I extend the perspective by taking into account the role of municipalities.
Using a cross-cantonal comparison and focusing on the policy area of special schools, I
assess the impact of local authorities sitting in the cantonal parliament on the cost distribution
formula between the cantons and the municipalities. In the third study in chapter
4, I examine whether the effects found for the particular policy area examined in chapter
3 can be identified throughout all policy areas in Switzerland. Finally, in a fourth empirical
study in chapter 5, I include the 1993 Belgian federalisation as a second case to allow
for a systematic comparison of the empirical findings.
The findings can be summarised as follows: First, there is indeed an effect of the NFA on
subnational fiscal power, albeit rather negative, given that the increase of subnational
expenditure is not matched by a corresponding increase of revenue. Second, chapters 3
and 4 point to the phenomenon of “state capture from below”, i.e. the efforts of municipalities
to shift expenditure to the cantonal level. As chapter 3 shows, the effect of the
NFA in the policy area of special schools is contingent on the number of local authorities
sitting in the cantonal parliament. Chapter 4 finds empirical evidence for the “state capture
from below” beyond individual policy areas. Finally, the comparison with Belgium
in chapter 5 leads to the conclusion that the de/centralization of the tax system is an important
moderating variable: While a centralised tax system in Belgium allows top-down
steering of expenditure through intergovernmental grants, the reform capacity in Switzerland
is lower, at least if the principle of cantonal tax autonomy should not be weakened.
All in all, the findings of the dissertation contribute to both the current public discussion
on a possible NFA II and the academic discussion on institutional (re-)design in federal
systems.
(NFA) has changed vertical fiscal power relations in Switzerland and what can be learned
from these findings for institutional design in federations in general. The main part of this
cumulative dissertation is composed of four empirical studies, each of them contributing
to the overall research question. The first study in chapter 2 takes a macro-perspective
and focuses on the impact of the NFA on subnational fiscal autonomy. In the second study
in chapter 3, I extend the perspective by taking into account the role of municipalities.
Using a cross-cantonal comparison and focusing on the policy area of special schools, I
assess the impact of local authorities sitting in the cantonal parliament on the cost distribution
formula between the cantons and the municipalities. In the third study in chapter
4, I examine whether the effects found for the particular policy area examined in chapter
3 can be identified throughout all policy areas in Switzerland. Finally, in a fourth empirical
study in chapter 5, I include the 1993 Belgian federalisation as a second case to allow
for a systematic comparison of the empirical findings.
The findings can be summarised as follows: First, there is indeed an effect of the NFA on
subnational fiscal power, albeit rather negative, given that the increase of subnational
expenditure is not matched by a corresponding increase of revenue. Second, chapters 3
and 4 point to the phenomenon of “state capture from below”, i.e. the efforts of municipalities
to shift expenditure to the cantonal level. As chapter 3 shows, the effect of the
NFA in the policy area of special schools is contingent on the number of local authorities
sitting in the cantonal parliament. Chapter 4 finds empirical evidence for the “state capture
from below” beyond individual policy areas. Finally, the comparison with Belgium
in chapter 5 leads to the conclusion that the de/centralization of the tax system is an important
moderating variable: While a centralised tax system in Belgium allows top-down
steering of expenditure through intergovernmental grants, the reform capacity in Switzerland
is lower, at least if the principle of cantonal tax autonomy should not be weakened.
All in all, the findings of the dissertation contribute to both the current public discussion
on a possible NFA II and the academic discussion on institutional (re-)design in federal
systems.
Date of Publication
2020
Year of graduation
2020
Theses Type
dissertation
Language(s)
en
Author(s)
Arnold, Tobias |
Faculty/Graduate School
Institute
Access(Rights)
open.access
Primary OA Publication
true