In November 2016, Jorge Martinez-Vazquez published an article with Santiago Lago-Peñas and Agnese Sacchi that gives a comprehensive and updated review of the impact of fiscal decentralization on the economy, society and politics in the Journal of Economic Surveys.
Lago-Peñas, Santiago, Jorge Martinez-Vazquez and Agnese Sacchi. 2016. “The Impact of Fiscal Decentralization: A Survey.” Journal of Economic Surveys. DOI 10.1111/joes.12182.
“In this paper, we offer a comprehensive and updated review of the impact of fiscal decentralization on the economy, society and politics. Our first target is the examination of two crucial and yet unsolved issues in the empirical literature on decentralization: the proper measurement of decentralization itself and its potential endogeneity in econometric estimates. Then, we discuss the main existing findings on the effects of decentralization on a relevant list of socio-economic issues. The impact of fiscal decentralization reforms on political institutions and public policies is also considered. Complete answers on the impact of fiscal decentralization are not likely to be certain but, overall, there are reasons to be optimistic about the net positive result. Our survey by necessity has to be selective but it presents a balanced view of what is known and what is not yet known opening room for further research and practice on fiscal decentralization.” – Journal of Economic Surveys-
Martinez-Vazquez is a Regents Professor of Economics and Director of the International Center for Public Policy (ICePP) at the Andrew Young School of Policy Studies at Georgia State University. Lago-Peñas is a Professor of Economics and Director of the Governance and Economics Research Network at the University of Vigo, Spain. Sacchi is an Assistant Professor of Public Finance at La Sapienza University in Rome, Italy.
Regents Professor of Economics; Director ICePP (AYSPS)
Area of Expertise: Fiscal Decentralization, Tax Policy
Professor of Economics,Department of Applied Economics, University of Vigo; Director of the Governance and Economics Research Network
Assistant Professor of Public Finance, La Sapienza University, Rome