The economics of fiscal decentralisation

Duc Hong Vo

MPRA Paper from University Library of Munich, Germany

Abstract: There is no complete overview or discussion of the literature of the economics of federalism and fiscal decentralization, even though scholarly interest in the topic has been increasing significantly over recent years. This paper provides a general, brief but comprehensive overview of the main insights from the literature on fiscal federalism and decentralization. In doing so, literature on fiscal federalism and decentralization is grouped into two main approaches: ‘first generation approach’ and ‘an emerging second generation approach’. The discussion generally covers the two notions of fiscal decentralization: ‘fiscal autonomy’ and ‘fiscal importance’ of subnational governments as the background of the most recently developed index of fiscal decentralization in Vo. The relevance of this discussion to any further development of a fiscal decentralization index is briefly noted.

Keywords: Decentralization theorem; Musgravian fiscal framework; Public choice; Tiebout sorting (search for similar items in EconPapers)
JEL-codes: H7 (search for similar items in EconPapers)
Date: 2010-09
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Citations: View citations in EconPapers (11)

Published in Journal of Economic Surveys 4.24(2010): pp. 657-679

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Related works:
Journal Article: THE ECONOMICS OF FISCAL DECENTRALIZATION (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:83991

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