Abstract Fiscal decentralisation might be partially responsible for rising income inequality by exacerbating competition between sub-national governments and compromising national government’s ability to redistribute. This paper investigates the relationship between fiscal decentralisation and...

State and local governments in OECD countries have access to a variety of fiscal resources. Discretion over these resources varies considerably, and so does sub-central governments’ power to shape public service delivery. The design of fiscal autonomy affects sub-central government’s...