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Central governments tend to intervene and constrain the behavior of local governments. The original drive for decentralization posited that lower level governments tend to make more efficient decisions over local public revenues and expenditures. The central government increasingly expanded its oversight of local governments in a large number of federations.
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Is Centralization a Solution to the Soft Budget Constraint Problem
Central governments tend to intervene and constrain the behavior of local governments. The original drive for decentralization posited that lower level governments tend to make more efficien…