This paper revisits the influential “Leviathan” hypothesis, which posits that tax competition limits the growth of government spending in decentralized countries. It uses panel data to examine the effect of fiscal decentralization over time within countries, attempting to distinguish between decentralization that is funded by intergovernmental transfers and local taxation. First, it sets out a ...

Indonesia went through a process of fiscal decentralization in 2001 involving the devolution of several policymaking and service delivery functions to the subnational tiers of government (provinces and districts). This process is likely to have affected regional patterns of urbanization, because the new prerogatives granted to the local governments have altered the distribution of urban ameniti...

In this paper, we study a model à la Rogoff (1990) where politicians distort fiscal policy to signal their competency, but where fiscal policy can be centralized or decentralized. Our main focus is on the equilibrium probability that fiscal policy is distorted in any region, which we call the probability of a Political Budget Cycle (PBC). With centralization, there is the possibility of selecti...

Fiscal decentralization is one of the strategies applied to involve both national and local governments in environmental management. Although, this study tries examine its effectiveness Nigeria which has been ambiguous. Using a multiple regression method, examines effect revenue fiscal structure on CO2 emission management from 2007 2020. Controlling pollution through system exceedingly difficul...

Hungary has gone through a radical structural change after the fall of the socialist block in Central-Eastern Europe. Two basic processes dominated the transition: privatization and decentralization. The Hungarian experiences have given evidence that political decentralization of the state sector can have a substantial contribution to an efficient economic adjustment in the transitional recessi...

Abstract Decentralization of power has brought sweeping changes to governance systems of many developing countries over the past few decades. During 1997-2007 the World Bank has given $22 billion to its client countries to facilitate this process. However, the empirical evidence on the effects of decentralization on welfare outcomes has been both limited and ambiguous. Additionally, empirical c...