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 …

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 …, the theory's main insight being that the central government's electoral strength should, all else being equal, decrease …

explaining variation in the degree of decentralization across countries. Within a two-sided incomplete information principal …-agent framework, it analyzes two alternative policy-decision schemes — ‘decentralization' and ‘centralization' — when ‘knowledge … government levels. It is shown that, depending on which level of policy decision-making controls the degree of decentralization …

line with the hypothesis that greater revenue decentralization (measured as sub-national governments' share of own source …

We study the relationship between fiscal decentralization and economic growth for 23 OECD countries from 1975 to 2001 … by using new panel data on sub-federal tax autonomy. While initial estimations suggest that fiscal decentralization … evidence for a negative relationship in a number of additional robustness checks. We thus conclude that fiscal decentralization …

We propose a theory of tax centralization and inter governmental grants in politico-economic equilibrium. The cost of …

. Following the decentralization theorem, the devolution of powers should increase aid effectiveness, since local decision …-makers are better informed about local needs. At the same time, decentralization has reverse effects, e.g., through coordination … consider how both anti-poverty instruments - financial assistance and decentralization - work together …

principal component analysis, seven aspects of both federalism and decentralization are used as variables for explaining … degrees. This study adds to our knowledge on the transmission mechanisms of federalism and decentralization …