Fiscal decentralization key to addressing regional disparities and boosting economies.
The article discusses how fiscal policy is important for stabilizing economies, especially in regions with large disparities. Fiscal decentralization, where lower levels of government have more control over finances, is a key issue. However, measuring the actual level of fiscal autonomy is tricky. The paper aims to identify the legal and institutional factors that affect this measurement. It also looks at how political and legal systems influence the feasibility of fiscal decentralization.