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The Economics Of Fiscal Decentralization

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  • Duc Hong Vo

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. Copyright � 2009 Blackwell Publishing Ltd.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Journal of Economic Surveys.

Volume (Year): 24 (2010)
Issue (Month): 4 (09)
Pages: 657-679

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Handle: RePEc:bla:jecsur:v:24:y:2010:i:4:p:657-679

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Cited by:
  1. Lisa Grazzini & Alessandro Petretto, 2012. "Voting on devolution in a federal country with a bicameral national system," Economics of Governance, Springer, vol. 13(1), pages 51-72, March.
  2. Alessandro Petretto, 2010. "Need Equalization transfers and Productive Efficiency of Local Governments," Working Papers - Economics wp2010_14.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
  3. Christian Melly, 2012. "Local Government Indebtedness and Debt Management in Switzerland. Causes and Consequences," Public Finance Quarterly, State Audit Office of Hungary, vol. 57(2), pages 164-172.

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