Preventing local profligacy (or Fiscal Federalism 201)

As I wrote previously, fiscal federalism allows local governments to adjust their policies to local circumstances, but this often entails transfers from the central government to local governments. Often, the central government can set particular policy goals for local governments, for instance, Dutch municipalities execute many parts of Dutch social policy. They have fairly little … Continue reading Preventing local profligacy (or Fiscal Federalism 201)