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We develop an endogenous growth model with public consumption and infrastructure services provided by two-tier governments. Growth performance and welfare implication are compared under the centralized and decentralized fiscal federal systems. In general, there is a trade-off between welfare and...
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The objective of this paper is to examine the simultaneous relationship between fiscal decentralization, economic … that the significant relationship does exist between fiscal decentralization, economic growth, and human development from … decentralization, respectively. These results hold true with alternative estimation methods and sub-indexes of decentralization …
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China's fast growth has been accompanied by rising regional inequality, triggering debate over a policy trade-off between aggregate growth and equity. We set out a three-region model of China in which local government behavior affects local TFP dynamics, and regional inequality itself generates...
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