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By studying the interaction between social capital and decentralization, we show that political decentralization can be a source of divergence across heterogeneous regions. In particular, we claim that since the local endowments of social capital display their effect on the economy mainly...
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This paper analyses the effect of federalism on fertility and growth. In a model with human capital accumulation and … lower or higher under federalism. Interestingly, the fertility differential is reversed: while under central finance, rich … decentralisation empirically on a panel of OECD countries and finds a weak negative effect of decentralisation on total and …
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