minimizing informational spillovers. To address this failure, we introduce a dynamic form of federalism in which the central …

. Building on insights provided by the “second generation” wave of research on fiscal federalism, this paper proposes a unified … model to account for this. The idea is that decentralization serves as a commitment device to ensure that ex post chose … the decentralization process in China in 1980-1990s, as well as the fact that government decentralization is generally …