This paper gives an insight into changes in intergovernmental grants structure, focusing on the type of public project. Presenting a simple model which incorporates the endogenous determination of project type and grants structure, the results show that as the relative cost encountered by...

This study deals with an analysis of allocation of government authority between local and central governments. Using a relatively simple model, we examine three classes of issues: First, what type of public project is implemented under a (de)centralized system? Second, is the size of governments...