Unfunded Mandates and the Economic Impact of Decentralisation. When Finance Does Not Follow Function

• Published in: Political studies Vol. 72; no. 2; pp. 652 - 676
• Main Authors: Rodríguez-Pose, Andrés, Vidal-Bover, Miquel
• Format: Journal Article
• Language: English
• Published: London, England SAGE Publications 01.05.2024; Sage Publications Ltd
• Subjects: Decentralization; Economic development; Economic growth; Economic impact; Economic performance; Finance; Regional economic development; Regions; Resource allocation; Wealth; fiscal decentralisation; political decentralisation; regions; OECD; unfunded mandates; economic growth

Decentralisation has frequently been sold as a means to increase well-being and development. Yet, questions remain as to whether decentralisation improves economic performance. This is possibly because decentralisation processes have often led to ‘unfunded mandates’, that is, a mismatch between the...