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Municipal finance in federalist systems

In: Research Handbook on City and Municipal Finance

Author

Listed:
  • Chris Thayer
  • Alex Hathaway
  • Jorge Martinez-Vazquez

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.

Suggested Citation

  • Chris Thayer & Alex Hathaway & Jorge Martinez-Vazquez, 2023. "Municipal finance in federalist systems," Chapters, in: Research Handbook on City and Municipal Finance, chapter 20, pages 370-390, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:20063_20
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    File URL: https://www.elgaronline.com/doi/10.4337/9781800372962.00029
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