country's decentralization level serves as a strategic tool through its influence on the mix of horizontal and vertical …

potential disadvantage with decentralization in our model is that local dominant groups with rather "extremeʺ preferences may … result is that the centralized solution may welfare dominate decentralization even in the absence of scale economics and … preferences, factors that are normally considered to be arguments in favor of decentralization, may reduce the attractiveness of …

paper compares three regimes (centralization, decentralization and federalism) in an economy where individuals choose their … move from decentralization to federalism, called moral federalism, is welfare improving behind the veil of ignorance if and … only if centralization dominates decentralization, and (ii) for the group that favors a restrictive policy moral federalism …

Differences in the degree of fiscal decentralization observed between the U.S. and many countries in Europe cannot be … explained within the standard theory of fiscal decentralization. By introducing preferences for solidarity equality in the … provision of public goods and services across regions we show that different decentralization schemes can coexist as efficient …

This paper adds to the literature by utilizing improved data on tax revenue decentralization to re-examine the … relationship between fiscal decentralization and the size of government. An econometric analysis using panel data from 18 OECD … countries shows that fiscal decentralization matters for both the size and composition of government spending. Tax revenue …

We study the tension between fiscal decentralization and progressive taxation. We present a multi-community model in …