We propose a theory of tax centralization and inter governmental grants in politico-economic equilibrium. The cost of … the local level. This renders the degree of tax centralization and the tax burden determinate even if none of the … traditional, expenditure-related motives for centralization considered in the fiscal federalism literature is present. If central …

' information is more relevant (centralization). The empirical analysis confirms that the importance of donors' private information …

-agent framework, it analyzes two alternative policy-decision schemes — ‘decentralization' and ‘centralization' — when ‘knowledge …

centralization is likely to produce more efficient results. Moreover, in a political economy framework, each decision - including the …

This paper analyzes the relationship between the size of an economic union and the degree of policy centralization. We … consider a political economy setting in which elected representatives bargain about the degree of centralization within the … outcome. We show that the relationship between the size of the union and centralization may be non-monotonic: Up to a certain …