Municipal finance in federalist systems

Chris Thayer, Alex Hathaway and Jorge Martinez-Vazquez ()

Chapter 20 in Research Handbook on City and Municipal Finance, 2023, pp 370-390 from Edward Elgar Publishing

Abstract: This chapter profiles the municipal systems of the 26 federal countries worldwide. First, the text provides context on the coming-together, holding-together, and putting-together pressures that may drive countries to select a federal model. Next, it profiles the federal countries and describes their federating units, capital cities, and municipality systems, with a focus on each system’s degree of territorial completeness and number of subnational strata. Then the chapter takes a closer look at municipal finances in select federal countries, demonstrating the association of intergovernmental granting levels and types - un/conditional, non/discretionary, and share of total funds - and municipal autonomy. Finally, the chapter discusses three prominent trends influencing municipalities and their finances: aggregation and incorporation pressures, intra- and inter-strata competition, and climate mitigation. Only by holistically understanding these rising challenges and the historical-political dynamics of the municipal setting can local governments effectively manage and evolve their finances.

Keywords: Economics and Finance; Politics and Public Policy Urban and Regional Studies (search for similar items in EconPapers)
Date: 2023
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