response. In this paper, we explore the effect that competition for residents induced by fiscal decentralization has on 'waste … an additional advantage of fiscal decentralization …

-transfers, which distorts the central-local distribution of resources. Applying the model to fiscal decentralization, we find when … decentralization widens local governments' fiscal gap, borrowings by both local and central governments rise. Quantitatively, fiscal … decentralization accounts for from 19 percent to 40 percent of changes in general government debt in Spain during 1988-2006. A …

decentralization, based on relationships of accountability between different actors in the delivery chain. Moving from a model of … central provision to that of decentralization to local governments introduces a new relationship of accountability …. Only by examining how these relationships change can we understand why decentralization can, and sometimes cannot, lead to …

decentralization, based on relationships of accountability between different actors in the delivery chain. Moving from a model of … central provision to that of decentralization to local governments introduces a new relationship of accountability …. Only by examining how these relationships change can we understand why decentralization can, and sometimes cannot, lead to …