We analyze a simple model of local public good provision in a country consisting of a large number of heterogeneous regions, each comprising two districts, a city and a village. When districts remain autonomous and local public goods have positive spillover effects on the neighbouring district,...

We analyze a simple model of local public good provision in a country consisting of a large number of heterogeneous regions, each comprising two districts, a city and a village. When districts remain autonomous and local public goods have positive spillover effects on the neighboring district,...

Federalism can be a conflict-prevention mechanism, but some political scientists and economists have also endorsed certain features of the system as being likely to establish proper market incentives for economic growth. Most developing countries have ignored economists' recommendations for...

In this essay, I argue that the various institutional settings of fiscal decentralization observed in developing countries are contingent on institutional quality. Other incentives may exist for policymakers to change the degrees of fiscal power. My research is based on a five-year average of...

This paper studies comprehensive national panel data of local option sales taxes at the monthly frequency. I calculate state-by-month population weighted averages of local sales tax rates. I document ten stylized facts concerning the time series patterns and spatial dynamics of local sales...

Using a cost-capacity gap framework, this paper is the first study to quantify nonschool fiscal disparities across Connecticut municipalities. In the absence of a Uniform Chart of Accounts for municipalities, the paper uses a newly assembled dataset of multi-year local financial records,...

Social inequalities are a significant challenge in developing countries. Therefore, they should be treated as a leading priority in boosting socio-economic development. Such inequalities are a growing challenge for Poland. It is believed that social inequalities are behind Poland's relatively...

We show that the efficacy of fiscal decentralization in enhancing economic growth and labor productivity growth depends on whether taxes are collected at the central level or at the sub-national level. To empirically examine the differential effects, we introduce a distinct measure of fiscal...

This Article offers an innovative approach to settling disputes about interjurisdictional externalities. Focusing attention on the negative spillover effects of local government zoning decisions on neighboring jurisdictions, the Article develops a monetary compensation regime intended to enrich...

This paper provides a simple political agency model to explain the effect of political alignment between different tiers of government on intergovernmental grants and election outcomes. Key features of the model are: (i) rational voters interpret public good provision as a signal of incumbent...