The theoretical literature on the economics of fiscal federalism has identified several potential effects of government decentralization on economic growth. Much of the traditional literature focuses on the efficiency aspects of a decentralized provision of public services. However,...

Infolge der Regionalisierung von Wirtschafts- und Strukturpolitik entstehen entweder vollkommen neue Institutionen (horizontale Regionalisierung) oder Institutionen mit neuen Kompetenzen (vertikale Regionalisierung). Der Erfolg einer Regionalisierungspolitik läßt sich am Grad der...

This paper studies the impact of decentralization on the shadow economy. We argue that decentralization may decrease the size of the shadow economy mainly through two transmission channels: (1) Decentralization enhancing public sector efficiency (efficiency effect), and (2) decentralization...

The paper confronts different aspects of decentralization: fiscal decentralization, postconstitutional regulatory decentralization, and constitutional decentralization – using a single dataset from Russian Federation of the Yeltsin period as a politically asymmetric country and a variety of...

This paper studies the impact of decentralization on the shadow economy. We argue that decentralization may decrease the size of the shadow economy mainly through two transmission channels: (1) Decentralization enhancing public sector efficiency (efficiency effect), and (2) decentralization...

This paper studies the efficiency of decentralized leadership in federations where selfish regional governments provide regional and federal public goods and the benevolent central government implements interregional earmarked and income transfers. Without residential mobility, unlimited...

In a federation with decentralized leadership, many regional governments provide multiple types of public goods and the center implements interregional income transfers. The symmetric perfect equilibrium under unlimited decentralized leadership is inefficient because regional public goods are...

This paper studies the impact of decentralization on the shadow economy. We argue that decentralization may decrease the size of the shadow economy mainly through two transmission channels: Decentralization enhancing public sector efficiency (efficiency effect), and decentralization reducing the...

We develop a model of policy experimentation in federal systems in which heterogeneous districts choose both whether to experiment and the policies to experiment with. The prospect of informational spillovers implies that in the fi rst best the districts converge in their policy choice....

This paper studies the efficiency of decentralized leadership in federations where selfish regional governments provide regional and federal public goods and the benevolent central government implements interregional earmarked and income transfers. Without residential mobility, unlimited...