Fiscal stability during the great recession. Putting decentralization design to the test
This paper provides an empirical analysis aimed at disentangling the roles played by decentralization level and design as well as the extended decentralized framework provided by subnational borrowing rules and fiscal responsibility laws on a country's fiscal stability. Using Organisation for Economic Co-operation and Development (OECD) countries' data from the period 1995-2014, strong regularities are found regarding the effects of decentralization, even during the recent Great Recession.