New WP in IDEAGOV Working Paper Series

IDEAGOV releases a new Working Paper by Luiz de Mello (OECD) and João Tovar Jalles (Universidade de Lisboa) titled Parable of the Talents: Does Differentiated Decentralisation Improve Performance?.

This study explores whether asymmetric decentralization (greater policy authority to selected regions) leads to stronger economic performance. Using harmonized OECD regional data from 1995 to 2021, the authors found that, while regions with more autonomy tend to have higher income levels, there is no evidence that this success is caused by their special structural factors. Actually, the findings suggest that the apparent economic advantages of these regions are mainly due to long-standinig structural factors and that asymmetric decentralization functions primarily as a tool to manage regional diversity and political tensions rather than as a direct driver of economic growth.

For further information, consult the Working Paper on: https://www.ideagov.eu/wp