Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/102103
Authors: 
Gradstein, Mark
Year of Publication: 
2014
Series/Report no.: 
CESifo Working Paper 4809
Abstract: 
In the past several decades, many countries, among them non-democratic, chose to decentralize their governments. Building on insights provided by the “second generation” wave of research on fiscal federalism, this paper proposes a unified model to account for this. The idea is that decentralization serves as a commitment device to ensure that ex post chose policies will reflect regional preferences, thereby boosting individual productive effort incentives. This theory may explain the decentralization process in China in 1980-1990s, as well as the fact that government decentralization is generally more prevalent in democracies.
Subjects: 
federalism
regional decentralization
non-democracies
JEL: 
H10
Document Type: 
Working Paper

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