line with the hypothesis that greater revenue decentralization (measured as sub-national governments’ share of own source …

The literature on socio economic implications of fiscal decentralization (FD) has recently been expanding, though only … budget deficits. Using various measures of both expenditure and revenue decentralization in a large panel data set, we show …

-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 …