This paper offers a comprehensive and updated review of the effects of intergovernmental grants. We focus on the main findings in the existing literature on the effects of intergovernmental grants on tax policy and choices, expenditure decisions, fiscal stability and behavioral choices, and...

This paper investigates the relationship between public sector employment and fiscal decentralization. We develop a theoretical framework modeling the interactions between the central and subnational executives regarding the level of public employment at the central and subnational government...

Fiscal decentralization in Indonesia had been a slow-burning affair since the mid 1970s, with the country being one of the most centralized in the world, until the “Big Bang” of the 1999 reforms, when, in the period of one year, Indonesia became in terms of expenditure shares one of the most...

This paper investigates the relationship between public sector employment and fiscal decentralization. We develop a theoretical framework modeling the interactions between the central and sub-national executives regarding the level of public employment at the central and sub-national government...

For almost 20 years, the Nicaraguan authorities have been implementing a fiscal decentralization process to devolve an increasing degree of autonomy to municipalities. As a part of this process, and mainly due to the efforts of the Association of Municipalities of Nicaragua (AMUNIC is the...

Vietnam is a poor country with large and increasing needs in infrastructure, education, health, and other areas of the public sector. The current policy of the Government of Vietnam (GOV) is not to increase tax effort, but actually to reduce it. Recently, the GOV has cut the rates of several...

For almost 20 years, the Nicaraguan authorities have been implementing a fiscal decentralization process to devolve an increase. ng degree of autonomy to municipalities. As a part of this process, and mainly due to the efforts of the Association of Municipalities of Nicaragua (AMUNIC is the...

Many countries around the world are currently pursuing policies for poverty reduction and improving income distribution. Many of these same countries are also aggressively implementing fiscal decentralization reforms. Although fiscal decentralization, poverty and the distribution of income have...

This paper contributes to the existing literature on the determinants of fiscal decentralization by motivating theoretically and exploring in depth the empirical relevance that geography has as determinant of fiscal decentralization. The relationship between decentralization and geography is...