Open research questions in Local Government Finance and Decentralization
410 unresolved questions extracted from the limitations and future-work sections of 3,177 Local Government Finance and Decentralization papers in our library. Each links back to the study that raised it.
What the literature leaves open
Further research could examine the effects of grant reforms on municipalities in other countries. Further research could investigate the effects of grant reforms on rural municipalities. Further research could analyze the effects of grant reforms over a longer period.
The effectiveness of grants is important, but understanding their incentive effects is equally essential. There is a need to examine how municipalities adjust their budgetary decisions when they lose eligibility for the grant. The impact of the 2017 reform of the Urban Solidarity Grant on municipal budgetary decisions in France is not well understood.
Moving beyond single-mechanism explanations toward integrated theories of how vertical and horizontal, economic and political processes jointly shape subnational tax policy
Beyond free riding or free racing: a framework for understanding subnational tax policy interdependence · 2026 · DOIlack of integration of vertical and horizontal dimensions and logics in understanding subnational tax policy interdependence - limited understanding of the interdependence of subnational tax policies - need for a framework to identify potential confounders and specify empirical strategies
Beyond free riding or free racing: a framework for understanding subnational tax policy interdependence · 2026 · DOIJurisdictions have incentives to undermine the institutions sustaining mobility, creating captive populations and earning monopoly rents. The institutional fragility of exit protection makes it difficult to sustain exit without relying on hierarchical enforcement. The need for a constitutional architecture that can offset the incentives of jurisdictions to eliminate mobility.
evaluating the effectiveness of different constitutional architectures in sustaining exit protection, - analyzing the impact of external factors on jurisdictional behavior and exit protection, - developing a more comprehensive model of political economy that incorporates exit protection and other institutional factors
While government-led digital initiatives f ocus on efficiency and compliance, their impact on vulnerable groups remains underexplored.
Overcoming Data Barriers: Digital Inclusion and Equitable Public Services for People with Disabilities in Thailand · 2025 · DOIMoreover, analyses of the effect of elasticity on spending, the ultimate object of interest in fiscal-illusion analysis, have generated only mixed results (compare Formouzis and Puri, 1980 and Craig and Heins, 1980 with Hansen and Cooper, 1980).
for the Study of Accounting and Information Hopwood. A. G.. Accounting and the Social, Research
The existing literature on fiscal federalism and decentralization in Pakistan has not adequately addressed the economic rationale for creating new provinces. The paper identifies a gap in the debate on fiscal federalism and decentralization in Pakistan.
The scope and clarity of the separation of powers between the federal and state governments in fiscal matters remain contested and at times ambiguous. The federal government has historically retained dominant control over taxation and fiscal distribution.
The gap between constitutional theory and administrative practice in Malaysia's fiscal federalism. The role of subsidiary legislation in eroding constitutional guarantees.
Future research could examine the effects of different types of regulations on intergovernmental competition. Future research could analyze the impact of the Furusato Nozei program on regional disparities in Japan.
Do caps on intergovernmental competition work? The case of Japan’s Furusato Nozei program · 2026 · DOIThe paper identifies a gap in the existing literature on the effects of regulations on intergovernmental competition. The paper highlights the need to consider the potential effects of regulations on municipal participation decisions.
Do caps on intergovernmental competition work? The case of Japan’s Furusato Nozei program · 2026 · DOIFurther study on the impact of extreme weather events on local government. Further study on the effectiveness of new plans and strategies. Further study on the role of the Local Democracy Taskforce in strengthening local governance.
The need for more effective response to extreme weather events. The need for more strategic planning in local government. The need for more investment in climate action.
The study identifies a gap in the understanding of how savings-based bonus rules shape budgetary behaviour in public institutions. The existing literature does not provide a clear understanding of the institutional logic of such mechanisms.
Savings-Based Incentive Traps in Public Budgeting: Evidence from Kazakhstan and Policy Lessons from Eastern Europe · 2026 · DOIThe lack of financial resources and limited management capabilities of local governments. The insufficiently effective administration of local taxes. The need for a model to strengthen local fiscal resilience through digital administrative reforms and optimised tax incentive structures.
Fiscal Decentralization and Local Tax Policy: An Empirical Analysis of Community Self-Sufficiency in Ukraine · 2026 · DOIFuture research should focus on finding ways to reduce tax evasion, - Improving the legal framework and its imperfections could be a potential solution.
The gap in the literature is the lack of analysis on the consequences of tax evasion for the economy and society, - The paper aims to fill this gap by analyzing the impact of tax evasion on the state's tax revenues.
Limited autonomy imposed by the central government. Centralised control and resource dependency. Lack of political will and elite capture of the decentralisation process.
The study identifies a gap in the current legal construction of subnational governance in Cameroon, which is inadequate to achieve the type of decentralised, inclusive system projected. The study highlights the need for significant legal reforms to strengthen regional and local authorities.
The study identifies a gap in the literature on the impact of mineral resource rents on sustainable development in developed countries. The study also identifies a gap in the literature on the role of fiscal decentralization in promoting sustainable development.
Environmental Regulations and Sustainable Development: The Role of Fiscal Decentralization and Clean Energy · 2026 · DOIThe study was limited to a selected group of developed countries, which may limit the generalizability of the findings to developing or resource-constrained Politická ekonomie, 2026, 74 (3), 536–559, https://doi. Further investigation of natural resources and economic growth: Do natural resources depress economic growth? Resources Policy, 50, 312–321.
Environmental Regulations and Sustainable Development: The Role of Fiscal Decentralization and Clean Energy · 2026 · DOIFuture research should explore the implications of recentralization for governance and accountability in Indonesia. Further studies could examine the effects of decentralization on regional disparities and democratic governance.
Most-cited papers in Local Government Finance and Decentralization
- The quality of government · The Journal of Law Economics and Organization · 1999 · 3,579 citations
- A Rational Theory of the Size of Government · Journal of Political Economy · 1981 · 3,186 citations
- An Essay on Fiscal Federalism · Journal of Economic Literature · 1999 · 1,954 citations
- The Expansion of the Public Economy: A Comparative Analysis · American Political Science Review · 1978 · 1,140 citations
- The Political Economy of Benefits and Costs: A Neoclassical Approach to Distributive Politics · Journal of Political Economy · 1981 · 1,045 citations
- Decentralization of Governance and Development · The Journal of Economic Perspectives · 2002 · 1,038 citations
- Balanced-budget redistribution as the outcome of political competition · Public Choice · 1987 · 1,027 citations
- Federalism as a Commitment to Preserving Market Incentives · The Journal of Economic Perspectives · 1997 · 953 citations
- Theories of Tax Competition · National Tax Journal · 1999 · 927 citations
- The Voracity Effect · American Economic Review · 1999 · 848 citations
Most recent work
- Fiscal capacity and capital misallocation: the economic costs of tax evasion · Journal of Public Economics · 2026
- State and Local Tax Policy in a Time of Telework · National Tax Journal · 2026
- The Effects of Decentralization on Local Governance: Evidence From Ukraine · Comparative Political Studies · 2026
- Fiscal Decentralization and Local Tax Policy: An Empirical Analysis of Community Self-Sufficiency in Ukraine · Journal of Applied Economic Sciences (JAES) · 2026
- Decentralized education in Somalia: lessons from East African models · Cogent Education · 2026
- When the money stops: fiscal and political reactions to changing grant eligibility · Public Choice · 2026
- Parable of the Talents: Is differentiated decentralisation associated with stronger regional performance? · The Annals of Regional Science · 2026
- Local Government, Shared Rule, and Problem-Solving in Federal Systems · Publius The Journal of Federalism · 2026
- Land Tax Reform vs Fiscal Stability Framework: A SISIF–APS–DTI Policy Model for Balanced Real Property Tax Reform in the Philippines · Zenodo (CERN European Organization for Nuclear Research) · 2026
- New Provinces within Pakistan? A Fiscal Federalism Perspective · 2026
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