An Analysis on Efficiency of the Fiscal Decentralization in America

As a country with advanced market economy, the U.S.A not only has gained great success in the economic development, but also has obtained many achievements in institutional design, development, and innovation. The fiscal decentralization in America is just one of those achievements. This paper explains the implication of fiscal decentralization efficiency and its measuring indexes. From such five aspects in America as the precisely assigned and exactly matched income right and expenditure right between governments, the scientific and rational transfer payments system, the decentralization and restriction mechanism, local government self-rule, and the distinct characteristic of rule of law. It also analyzes the reasons of obtaining high efficiency in America's fiscal decentralization.