This paper analyzes the impact of political and fiscal decentralization on regional inequalities, using a unique dataset which covers fifty-four countries at different stages of economic development. Cross-section and panel data estimations show that decentralization decreases regional...

The advantages and disadvantages of public sector decentralization are widely discussed in economics and political science. Some authors argue that decentralization leads to an optimal provision of public services and promotes economic growth, while others emphasize the dangers of competition...