Motivated by the recent experience in the Russian Federation, this paper examines the implications of imposing central control on the budgetary activities of a subnational government. In a highly stylised multi-task principal-agent model (Holmstrom and Milgrom (1991)), a central government...

Motivated by the Russian experience, this paper examines the implications of imposing central control on the budgetary activities of a subnational government. In a multi-task principal-agent model, the center cannot monitor directly the informal budgetary operations of a region, but it can exert...

Chapter 1: Financial control and financial management in the public sector: a managerial perspective -- Chapter 2: Implementing public financial management and internal control (PFM/IC -- Chapter 3: The distinction between public financial management and internal control (PFM/IC) and public...