Seminários GI

Explaining Revenue-Sharing Institutions: Increasing Local Financial Dependency in Western Europe

The vertical fiscal institutions that structure the relationship between central and sub-national governments greatly influence the performance of government, particularly the way publicly provided goods and services are offered. The observation of the intergovernmental fiscal systems shows that the allocation of expenditures is always greater than the allocation of tax authorities. A neglected question is how the sub-national governments are dependent on the central grants. In the last decades the tendency is quite clear in Western Europe.