interaction mitigates or reinforces antagonism towards other groups, the micro-founded theory we develop predicts that a country …

This paper shows that the inefficiency of fiscal decentralization in the presence of spillovers, a main tenet of the … decentralization literature, is overturned in a particular transportation context. In a monocentric city where road (bridge) capacity …

This paper shows that the inefficiency of fiscal decentralization in the presence of spillovers, a main tenet of the … decentralization literature, is overturned in a particular transportation context. In a monocentric city where road (bridge) capacity …

This paper revisits the fiscal quot;decentralization theoremquot;, by relaxing the role of the assumption that … voting, (i) 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 …

based on a simple model of partial fiscal decentralization, under which earmarking of central transfers for particular uses … is eliminated, allowing funds to be spent according to local tastes. The model predicts that partial decentralization … of public goods after a decentralization reform than before. Both predictions are confirmed by the paper's empirical …

accountability. We also show that decentralization can only Pareto dominate centralization in economies with negative externalities …