The relationship between decentralization of government activities and the extent of rent extraction by private parties is an important element in the recent debate on institutional design. The theoretical literature makes ambiguous predictions about this relationship, and it has remained virtually unexamined by empiricists. In this paper, we make a first attempt at examining this issue empiric...

We examine the relationship between fiscal decentralization and the functional composition of public expenditures. Using a distance-sensitive representative agent model, we hypothesize that higher levels of fiscal decentralization induce agents to demand increased production of publicly provided private goods. We test this hypothesis using an unbalanced panel data set of 59 developed and develo...

In many African countries, decentralization has long been viewed as a means for improving local service delivery. Yet, despite various decentralization initiatives, poor service delivery continues to be problematic in two of Kenya’s largest cities, Nairobi and Mombasa. Despite various governance reforms to enhance Kenya’s decentralization process, backed up by constitutional provisions and legi...

This paper studies the effect of fiscal and political decentralization on the death toll by disasters for up to 46 developing and transitional economies from 1974 to 2004. The results show that elected government at the local level does not help mitigate disaster risk. This study underscores the importance of the joint effects of different forms of decentralization and shows that when political...

This paper studies the choice between centralization and decentralization of fiscal policy in a political economy setting. With centralization, regional delegates vote over agendas comprising sets of regionspecific projects. The outcome is inefficient because the choice of projects is insufficiently sensitive to within-region benefits. The number of projects funded may be non-monotonic in the s...

The relationship between decentralization of government activities and the extent of rent extraction by private parties is an important element in the recent debate on institutional design. The theoretical literature makes ambiguous predictions about this relationship, and it has remained virtually unexamined by empiricists. In this paper, we make a first attempt at examining this issue empiric...

BACKGROUND In India, the process of decentralization of health services started taking shape in the mid-1990s. Systemic reforms envisaged delegation of administrative and financial responsibilities at district level for management of health-care institutions in 23 states of India in 1999. Subsequently, some of these reforms became part of the National Rural Health Mission (NRHM) launched in 200...

This paper studies strategic decentralization in binary choice composite network congestion games. A player decentralizes if she lets some autonomous agents to decide respectively how to send different parts of her stock from the origin to the destination. This paper shows that, with convex, strictly increasing and differentiable arc cost functions, an atomic splittable player always has an opt...

This paper looks at the relationship between fiscal and political decentralization and the evolution of regional inequalities in a panel of 26 countries – 19 developed and 7 developing – for the period between 1990 and 2006. Using an instrumental variables method, it finds that whereas for the whole sample decentralization is completely dissociated for the evolution of regional disparities, the...