Fiscal Federalism and the Political Economy of Decentralisation Module I: The Theory of Decentralisation and Fiscal Federalism

Level: 
Master's
Course Status: 
Elective
CEU code: 
POLS 5402
CEU credits: 
2
ECTS credits: 
4
Academic year: 
2008/2009
Semester: 
Winter
Start and end dates: 
5 Jan 2009 - 27 Mar 2009
Instructor(s): 
Attila Folsz

The aim of this course is to acquaint students with the major theoretrical approaches and issues of vertical division of government authority within states. Power of nation states is challenged simultaneously by supra- and sub-national bodies in the form of integration and regionalization/federalization. This course deals with the latter issue, namely how authority is shared between national and subnational levels of government. The course considers decentralization from two angles: The abstract normative approach of fiscal federalism discusses the various aspects of an optimal share of responsibilities, while the positive approach of political economy focuses on different trade-offs of decentralization and on how various interests and institutions deviate outcomes from a hypothetical optimum.