Why countries are fiscally decentralizing

@article{Arzaghi2005WhyCA,
  title={Why countries are fiscally decentralizing},
  author={M. Arzaghi and J. Henderson},
  journal={Journal of Public Economics},
  year={2005},
  volume={89},
  pages={1157-1189}
}
This paper models and empirically investigates underlying forces that promote governmental decentralization, or effective federalism, in the world over the last 25 years. A move to a federal system is based on the demand by hinterland regions for local autonomy, which increases with national income growth, greater relative hinterland population, and increasing national population. It is influenced as well by the degree of democratization nationally and locally. Decentralization is measured by… Expand
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