Fiscal decentralization (FD) and fiscal rules (FR) are institutional mechanisms that have been implemented in increasing number of countries by varying measures. This paper investigates empirically the effect of FR on the effectiveness of FD in achieving fiscal discipline. Panel evidence...

Modelin the local and central government behaviours to assess the welfare/efficiency/equity impacts of fiscal decentralization. Static optimization; simulation The relative welfare and efficiency effects of fiscal decision mechanisms (defined as social planners optimum choice of fiscal...