ready_data_for_modelling_latest.dta

It is regional-level data and a monthly time series. The collected data is from 2013/14 to 2020/21 of regions and mainly taken from the Ministry of Finance and Ministry of Revenue. As (Halder, 2007) indicates, there are two standardized measures of fiscal decentralization; Revenue Decentralization (<em>Rd</em>) and Expenditure Decentralization (<em>Ed</em>). And further, Human Capital (<em>h</em>) and Capital (<em>k</em>) are also considered. Variables Description The description of the independent variables listed is given below: The real per capita income proxied by GDP is the dependent variable and Revenue Decentralization (<em>Rd</em>), Expenditure Decentralization (<em>Ed</em>), Human Capital (<em>h</em>) and Capital (<em>k</em>) are the independent variables. <br> <strong>Revenue</strong> <strong>Decentralization</strong> <strong>(</strong><em>Rd</em><strong>)</strong>: Revenue decentralization indicates the amount or share of revenue generated by regions out of the total including the Federal. It measures fiscal decentralization and can be expressed by the ratio of sub-national revenue to the total government revenue. Sub- national government revenue is the summation of all sources of revenue at sub-national government levels, excluding the subsidies received from other governments and the grant from the central government while the total government revenue is the sum of sub-national and central government revenues. <br> <strong>Expenditure</strong> <strong>Decentralization</strong> <strong>(</strong><em>Ed</em><strong>)</strong>: Refers to the amount or share of the regions’ expenditure out of the total expenditure, including the Federal government. The ratio of total sub-national government spending to overall government spending is known as the expenditure ratio. In this case, regional and local public expenditures together make up sub-national government spending, whereas sub-national and central government spending together make up total government spend- ing. To avoid double counting, (Deribe, 2015) suggests, subsidies given to sub-national governments are excluded from the federal government expenditure. The reason is that when a certain level of government gives subsidies to a lower level of government, it accounts for that as an expense. Hence, the lower level of government, upon spending that money, also records it as an expense. Hence subtracting the subsidy ensures that the expenditure is recorded only once. <br> <strong>Human</strong> <strong>Capital</strong> <strong>(</strong><em>h</em><strong>)</strong>: This is indicated by the per capita health and expenditure of regions. <br> <strong>Capital</strong> <strong>(</strong><em>k</em><strong>)</strong>: Expressed by the per capita expenditure of regions.