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Financing Subnational Governments with Decentralized Taxes

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This paper is about the case for assigning taxing powers to subnational governments, and about the structure of this revenue assignment. As Musgrave (1983) put it in perhaps the seminal paper on this subject, “Who Should Tax, Where and What”? This review reconsiders the Musgrave questions after 25 years, asks whether the international trend in tax assignment is in step with what economists have prescribed, and concludes with some thoughts about the most likely future for the decentralization of tax systems.

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  • Roy Bahl, 2010. "Financing Subnational Governments with Decentralized Taxes," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1020, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    • Handle: RePEc:ays:ispwps:paper1020
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