The economics of fiscal decentralization

Journal of Economic Surveys

Volumn 24, Issue 4, 2010, Pages 657-679

  Vo, Duc Hong ^a  

^a UNIVERSITY OF WESTERN AUSTRALIA   (Australia)

Author keywords

Decentralization theorem; Musgravian fiscal framework; Public choice; Tiebout sorting

Indexed keywords

AUTONOMY; DECENTRALIZATION; FEDERAL SYSTEM; FISCAL REFORM;

EID: 77955760050     PISSN: 09500804     EISSN: 14676419     Source Type: Journal    
DOI: 10.1111/j.1467-6419.2009.00600.x     Document Type: Article

References (48)

1. Besley T, Coate S. Centralized versus decentralized provision of local public goods: a political economy approach. Journal of Public Economics 2003, 87:2611-2637.
2. Bird R. Intergovernmental fiscal relations: universal principles, local applications. 2000, Working Paper No. 00-2, International Studies Program, Andrew Young School of Policy Studies, Georgia State University
3. Bird R. Transfers and incentives in intergovernmental fiscal relations. 2004, http://www.fiscalreform.net, Available at, last accessed 1 November 2004
4. Boadway R. National taxation, fiscal federalism and global taxation. 2003, The WIDER Project on Innovation Sources of Development Finance, Queen's University, Canada
5. Boadway R, Flatters F. Efficiency and equalisation payment in a federal system of government: a synthesis and extension of recent results. Canadian Journal of Economics 1982, 15:613-633.
6. Brennan G, Buchanan JM. The Power to Tax - Analytical Foundations of a Fiscal Constitution 1980, Cambridge, Cambridge University Press
7. Buchanan J. Federalism and fiscal equity. American Economic Review 1950, 40(4):583-599.
8. Buchanan J. The demand and supply of public goods. 1999, http://www.econlib.org, The Library of Economics and Liberty, Available at, last accessed 10 January 2007
9. Buchanan J, Wagner R. An efficiency basis for federal fiscal equalisation. The Economics of Federalism 1980, Grewal B, Brennan GMathews R. In, eds, Canberra, Australian National University Press
10. Collins DJ. The 2000 reform of intergovernmental fiscal arrangements in Australia. 2001
11. Dollery B, Worhington A. Fiscal illusion at the local level: an empirical test using Australian municipal data. Economic Record 1999, 75:37-48.
12. Hamilton BW. Tiebout hypothesis. The New Palgrave: A Dictionary of Economics 1987, Vol. 4. Eatwell JMilgate MNewman P. In, eds, Basingstoke, Macmillan
13. Hobbes T. The Leviathan, chapter 1. 1660, http://oregonstate.edu/instruct/phl302/texts/hobbes/leviathan-contents.html, Available at, last accessed 11 February 2007
14. Joumard I, Kongsrud M. Fiscal relations across government levels. 2003, Economics Department Working Papers No. 375, OECD
15. Lockwood B. Distributive politics and the costs of centralisation. Review of Economic Studies 2002, 69(2):313-337.
16. Martinez-Vazquez J. The assignment of expenditure responsibilities. 2001, Andrew Young School of Policy Studies, Georgia State University
17. Mathews R. Mechanisms for fiscal equalisation. The Economics of Federalism 1980, Grewal BBrennan GMathews R. In, eds, Canberra, Australian National University Press
18. McLure C. The revenue assignment problem: ends, means, and constraints. Journal of Public Budgeting, Accounting and Financial Management 1998, 9(4):652-683.
19. McLure C, Martinez-Vazquez J. The Assignment of Revenues and Expenditures in Intergovernmental Fiscal Relations 2004, Washington, DC: World Bank
20. Musgrave RA. The Theory of Public Finance - A Study in Public Economy 1959, New York, McGraw-Hill
21. Musgrave RA. Approaches to a fiscal theory of political federalism. The Economics of Federalism 1980, Grewal BBrennan GMathews R. In, eds, Canberra, Australian National University Press
22. Musgrave RA. Who should tax, where, and what. Tax Assignment in Federal Countries 1983, McLure CE. In, ed, Canberra, Australian National University Press
23. Oates WE. Fiscal Federalism 1972, New York, Harcourt Brace Jovanovich
24. Oates WE. An essay on fiscal federalism. Journal of Economic Literature 1999, 37:1120-1149.
25. Oates WE. Toward a second-generation theory of fiscal federalism. Journal of International Tax and Public Finance 2005, 12:349-373.
26. Taxing Powers of State and Local Government 1999, OECD Tax Policy Studies No. 1, Paris, Organisation for Economic Cooperation and Development
27. Olson M. The principle of 'fiscal equivalence': the division of responsibilities among different levels of government. American Economic Review 1969, 59:479-487.
28. Parry H. How large are the welfare costs of tax competition. Journal of Urban Economics 2003, 54:39-60.
29. Petchey J. Resource rents, cost differences and fiscal equalisation. Economic Record 1995, 71:343-353.
30. Petchey J, Levtchenkova S. The welfare effects of fiscal equalisation in a federal economy with factor mobility and strategic behaviour. 2002, Mimeo, School of Economics and Finance, Curtin University
31. Petchey J, Levtchenkova S. Fiscal equalisation in Australia: proposals for an efficiency-based system. Economic Papers 2004, 23(2):189-200.
32. Rodden J. Decentralization and the challenge of hard budget constraints. 2000, PREM Notes, Public Sector, No. 41, World Bank
33. Samuelson P. The pure theory of public expenditure. Review of Economics and Statistics 1954, 36(4):387-389.
34. Schroeder L, Smoke P. Intergovernmental fiscal transfers: concepts, international practice, and policy issues. Intergovernmental Transfers in Asia: Current Practice and Challenges for the Future 2003, Smoke P, Kim YH. In, eds, Manila, Asian Development Bank
35. Scott D. A note on grants in federal countries. Economica 1950, 17(68):416-422.
36. Seabright P. Accountability and decentralisation in government: an incomplete contracts model. European Economic Review 1996, 40:61-89.
37. Shah A. Expenditure Assignment. Intergovernmental Fiscal Relations and Local Financial Management Program 2004, Washington, DC: World Bank
38. Tanzi V. Fiscal federalism and decentralization: a review of some efficiency and macroeconomic aspects. Annual World Bank Conference on Development Economics 1995 1995, Bruno MPleskovic B. In, eds, Washington, DC, World Bank
39. Ter-Minassian T. Borrowing by subnational governments: issues and selected international experiences. 1996, IMF Paper on Policy Analysis and Assessment, International Monetary Fund
40. Tiebout CM. A pure theory of local expenditures. Journal of Political Economy 1956, 64:416-424.
41. Turnbull GK. The overspending and flypaper effects of fiscal illusion: theory and empirical evidence. Journal of Urban Economics 1998, 44:1-26.
42. Vo D. Fiscal decentralisation indices: a comparison of two approaches. Rivista di diritto finanziario e scienza delle finanze 2008, LXVII:295-323. 3, I
43. Wagner R. Fiscal Sociology and the Theory of Public Finance: An Exploratory Essay 2007, Cheltenham, Edward Elgar
44. Weingast BR. The economic role of political institutions: market-preserving federalism and economic development. Journal of Law, Economics and Organisations 1995, 15(1):1-31.
45. The economics of fiscal decentralisation: framework and principles. 2003, http://www.worldbank.org, World Bank, Available at, last accessed 23 September 2004
46. Should borrowing by the public sector be decentralised. 2004, World Bank, Decentralisation Thematic Team, Washington, DC
47. Wurzel E. Towards more efficient government-reforming federal fiscal relations in Germany. 1999, OECD Economics Department Working Papers No. 209, Paris
48. Zabalza A. A general framework for the analysis of fiscal equalisation systems. Spanish Economic Review 2003, 5:205-232.