Fiscal decentralization is high on the agenda in policy fora. This paper empirically investigates the underlying causes … of fiscal decentralization, based on the predictions of a simple political economy model. We argue that the likeliness … support the relevance of political factors as determinants of fiscal decentralization. The relationship between central …

decentralization on economic growth. Much of the traditional literature focuses on the efficiency aspects of a decentralized provision … of public services. However, decentralization may also increase growth by raising the ability of the political system to … innovate and carry out reforms. On the contrary, some authors argue that decentralization increases corruption and government …

This paper analyzes the impact of political and fiscal decentralization on regional inequalities using a unique data … that decentralization decreases regional inequalities in general. However, estimations using an interaction variable … approach imply that the effect depends on the level of economic development. While rich countries benefit from decentralization …

component analysis, seven aspects of both federalism and decentralization are used as variables for explaining differences in (1 … study adds to our knowledge on the transmission mechanisms of federalism and decentralization. …

predictions of a new political economy model of partial decentralization. The analysis is based on an agency model, in which two … decentralization is endogenous and depends on the relative politi- cal conditions prevailing at each level of government. Consistent … with the model’s predictions, empirical results from a panel of Canadian provinces show that decentralization in a province …