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On the dangers of decentralization (English)

The author highlights some of the dangers of decentralizations. The benefits of decentralization in allocative efficiency are not as obvious as suggested by the standard theory of fiscal federalism. The assumptions of this theory are fragile. These doubtful benefits might carry a cost in production efficiency, but more empirical research is needed on this point. What is not doubtful is that decentralization runs counter to redistribution and stabilization...
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Citation

Prud'homme, Remy; DEC.

On the dangers of decentralization (English). Policy, Research working paper ; no. WPS 1252 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/218141468739288067

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