The UK Government published a new White Paper on International Development in November 1997. The White Paper sets out the UK Government's vision and new policies for the elimination of international poverty; it explains the new objectives and strategy for the Department for International...

The expanding literature on fiscal decentralization (FD) emphasizes the role of institutional mechanisms for FD's welfare effects. We analyze the welfare effects of FD in case of a fiscal transfer mechanism that punishes inefficiency in tax collection and compensates for local income deficiency....