In this paper we investigate the effects of fiscal decentralization on income inequality using a sample of 23 OECD countries over the period 1971-2000. We utilize novel and robust measures of fiscal decentralization based on different degrees of expenditure and tax autonomy of sub-central...

The theory of fiscal federalism points out that decentralization should be pursued in order to fit differences in individual preferences. However, the presence of externalities and the need of providing merit goods to citizens suggest that centralization is likely to produce more efficient...

The theory of fiscal federalism points out that decentralisation should be pursued in order to fit differences in individual preferences. However, the presence of externalities and the need of providing merit goods to citizens suggest that centralisation is likely to produce more efficient...