This paper studies the impact of decentralization on the shadow economy. We argue that decentralization may decrease … the size of the shadow economy mainly through two transmission channels: (1) Decentralization enhancing public sector … efficiency (efficiency effect), and (2) decentralization reducing the distance between bureaucrats and economic agents, which …

Previous empirical studies suggest that decentralization, measured by the number of government layers, is associated … present evidence that fiscal decentralization (de facto) does not reduce FDI. If local governments can set their tax rates and …

The literature on socio economic implications of fiscal decentralization (FD) has recently been expanding, though only … budget deficits. Using various measures of both expenditure and revenue decentralization in a large panel data set, we show …

competition with only a tax shifter, local mobility induces income sorting. Hence, despite centralized redistributive taxation … panel data and apply causal machine learning methods to identify the effects of decentralization on the statutory tax …

We study the impact of taxation on the location choices of individuals and tax bases in Italy. We exploit some recent … tax decentralization reforms, which granted regions and municipalities greater power in setting income tax rates across … locations, we show that taxation significantly shapes location decisions. The mobility response greatly varies across the income …

Many countries have adopted decentralization policies in order to strengthen democratic governance. Nevertheless …, empirical literature on whether decentralization actually strengthens democratic governance is relatively limited when compared … to empirical literature on the impact of decentralization on a wide array of fiscal or economic variables. Therefore …

Fiscal decentralization and intergovernmental fiscal relations reform have become nearly ubiquitous in developing …