two outlays. Productivity of government infrastructure spending can differ across regions. This assumption follows well … revenue and expenditure decisions is the optimal fiscal arrangement for the country when infrastructure spending productivity … composition. Only when the differences are sufficiently large does full decentralization become the optimal regime. National …

(NRRP) on the persistent North-South productivity gap. Our model underscores public investment as a catalyst for sustained …, decentralization weakens the NRRP's impact on the relative position of the South. However, even under our best scenario - centralized … management - the NRRP only slightly reduces the NorthSouth productivity gap from 75% to 76.4%. Finally, our research highlights …