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Fiscal Decentralization (Sow & Razafimahefa)

Fiscal decentralization and fiscal policy performance by Moussé Sow and Ivohasina Razafimahefa published by IMF (3/2017). “This paper explores the impact of fiscal decentralization on fiscal policy performance in a large sample of advanced and developing economies. The findings suggest that a larger share of decentralized expenditure is associated with a stronger fiscal balance; however, fiscal decentralization can lead to more pro-cyclical fiscal policy…”

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