In this paper we examine how sub-central governments respond to significant changes in their grant allocations. We focus on the reactions of State, Regional and Local governments in fifteen countries over a period of 20 to 30 years to significant exogenous increases and decreases in their grant...

This paper contributes to a developing literature that examines financial interactions between different levels of government. More specifically, we investigate the use of grants, shared tax revenues, and their impact on fiscal outcomes, including decentralized service provision. Most existing...

This paper contributes to the established literature on fiscal consolidations by investigating the distinct behaviour of central and sub-central tiers of government during general government consolidation attempts. In the light of different degrees of decentralisation across OECD countries, and...