centralization and decentralization are suboptimal as long as political bargaining does not take place. With bargaining, however, the … first best can often be achieved under decentralization, but not under centralization. At the root of this result is the …

enterprises. Fiscal decentralization combined with monetary centralization (i.e. fiscal federalism) may achieve not only hard … village levels. We study the effect of regional decentralization on soft budget constraints in these enterprises. We show that …. Decentralization of monetary authority leads to a softening of local governments' budget constraints, however, as well as those of …

resist reforms, policies, rules and laws. China’s reform trajectories have been shaped by regional decentralization …

– federalism, Chinese style. We suggest a range of incentives that propel local governments toward SOE reform, including their … harder budget constraints and increased competition from the non-state sector. In this sense, Chinese style federalism, has …

federal centre. The theory is supported by the recent experience of Russia, China, and Argentina. …

The optimal degree of decentralization depends on the importance of inter-state externalities of local policies. We … number influenced by local business groups. Our findings have implications for the literatures on federalism and on …