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Role of the government can be played on either centralised or
decentralised basis. In recent years, due to developments in the
European Union, suspicion of powerful centralised system of
government, growing disenchantment with the functioning of the
public sector, and cultural and ethnic diversity, decentralisation
has become an attractive topic among both economists and political
scientists. Therefore, this publication touches on theoretical work
on provision of public goods, Tiebout model, club theory, and the
Leviathan model as well as empirical aspects of decentralised
governance.
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