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The Effect of Fiscal Decentralization on the Financial Condition of Municipal Government

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  • Samuel B. Stone

Abstract

This study examines the effect of fiscal decentralization between states and their local governments on the financial condition of municipal governments. There are strong theoretical arguments on both sides of the federalism debate about the benefits for and against decentralization. Most of the research in this area investigates economic and social welfare consequences of fiscal decentralization. There is limited research, however, on the effects of fiscal decentralization on the financial health of local governments. Using data from the nation’s 150 largest cities, this study finds that intrastate fiscal decentralization results in weaker financial condition for municipalities in those states.

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  • Samuel B. Stone, 2015. "The Effect of Fiscal Decentralization on the Financial Condition of Municipal Government," International Journal of Public Administration, Taylor & Francis Journals, vol. 38(6), pages 453-460, May.
    • Handle: RePEc:taf:lpadxx:v:38:y:2015:i:6:p:453-460
    DOI: 10.1080/01900692.2014.949740
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    Cited by:

    1. Filip Hrůza, 2023. "Analysis of the Financial Behaviour of Czech Municipalities as a Possibility for International Comparisons," Prague Economic Papers, Prague University of Economics and Business, vol. 2023(4), pages 389-410.

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