The Decentralization Theorem (Oates, 1972) is central to the discussion of fiscal federalism. We revisit the role of … consumption spillovers in evaluating the merits of (de)centralization. Unlike the general prediction, a higher degree of … spillovers may reduce the difference in utility of centralization and decentralization. The non-monotonicity result relates to …

The fiscal decentralization impulse now sweeping the world often leads to partial decentralization, where subnational … arrangement, the literature contains no economic analysis of a partial decentralization regime in a Tiebout-style model. This …

comparing decentralized and centralized system. As in the recent Second Generation Theory (SGT) of fiscal federalism (Seabright … production cost of the public good in each region, a different trade-off - from the traditional and new theory of fiscal …. Given this general framework, the convenience of decentralization versus centralization mainly depends on the interaction …

This paper revisits the fiscal decentralization theorem, by relaxing the role of the assumption that governments are …) centralization can welfare-dominate decentralization even if there are no externalities and regions are heterogenous; (ii …) decentralization can welfare-dominate centralization even if there are positive externalities and regions are homogenous. The intuition …

panel data and apply causal machine learning methods to identify the effects of decentralization on the statutory tax …