There are many situations where the best outcome is reached through co-operation and co-ordination of agents’ actions. Although this is the best collective outcome, economic agents may fail to implement such co-operative strategy. The reason for this failure may be lack of information about...

The present work looks at the relationship between institutional structure and economic performance at the regional level. The work focuses on one particular aspect, the number of municipalities in a given region (municipal fragmentation) and the impact on regional development measured as GDP...

The present work investigates the relationship between municipal fragmentation and regional per capita GDP growth rate, using a panel of OECD TL2 regions in the period 1996-2011. According to the fiscal decentralisation literature, fragmentation should enhance growth as local government closer...

Slow productivity growth in advanced economies holds back income gains and therefore improvements in well-being. Sluggish productivity gains in aggregate hide a growing gap between firms at the frontier, which display sustained productivity growth, and the rest of firms whose productivity...

Tax decentralisation should improve the efficiency of local governments and ultimately boost output growth. The empirical evidence is however mixed. The current work looks at two channels through which tax decentralisation may affect economic growth: labour productivity and employment rate. The...