Horizontal and vertical fiscal externalities Academic literature in public finance has recently focused on horizontal externalities coming from interjurisdictional tax competition ? namely among similar types of local governments ? and vertical externalities arising from interactions between...

For the past two decades, experiments in decentralization and federalization have been developing in Africa, Asia, and the formerly communist states of Eastern Europe. Many of the powers previously in the hands of the central government or its de-concentrated structures have been transferred to...