Subnational governments are an important part of the public sector in the EU8 countries. They provide basic public services in both the social sectors (education, health, and social assistance) and in infrastructure (water supply, sewerage and transport). They account for about one-quarter of...

Fiscal responsibility laws are institutions with which multiple governments in the same economy-national and subnational-can commit to help avoid irresponsible fiscal behavior that could have short-term advantages to one of them but that would be collectively damaging. Coordination failures with...

Fiscal responsibility laws are institutions with which multiple governments in the same economy -- national and subnational --can commit to help avoid irresponsible fiscal behavior that could have short-term advantages to one of them but that would be collectively damaging. Coordination failures...

Webb discusses fiscal responsibility laws in Latin America, with special attention to their provisions for fiscal discipline by subnational governments. He discusses why and when such laws might be useful - to help resolve the coordination problem in getting diverse governments to avoid...