Decentralization reforms typically lead to the coexistence of multiple tiers of government in a given policy area. To … analyze the welfare effects of such partial decentralization, this paper develops a political agency model in which two levels … decentralization is desirable only if the benefits of vertical complementarity in public good provision outweigh the costs of reduced …

The paper is concerned with what Albert Breton, in his theory of competitive federalism has called vertical competition … government playing the role of a monitor. As is illustrated by the decentralization experience in France, a lively vertical …

traditional, expenditure-related motives for centralization considered in the fiscal federalism literature is present. If central …