The free-market view is in general in favour of decentralization. By and large, the rationale behind this claim is that decentralized taxation and spending imply greater accountability for politicians and public officials. In turn, greater accountability generates less corruption and better services to the community. The authors of this paper suggest that this claim needs to be taken with caution, since the quality of the local institutions significantly affects the outcome of fiscal decentralization (spending performance).
Decentralization
The author of this book, Gérard Bramoullé, is deputy mayor in charge of finance for the city of Aix-en-Provence. He is explaining why the local taxes are explosing in France…