Influence of Fiscal Asymmetric Decentralization on Household Effects—A Review of Recent Literature

The study is in line with Oates (1951), where fiscal decentralization is explained as the delegation of income and consumption powers from the central government to the devolved units, both local and national levels within the framework of decentralization. Fiscal decentralization is considered to be the panacea in eradicating poverty, particularly in developing countries. This review entails the assessment of the influence of fiscal asymmetric decentralization on household effects. Specifically, the review looks at the interaction between budget efficacy, fiscal policy, and county treasury management and household effects. Despite the fact that scholarly work has been conducted on all the concepts, arguably inadequate attention has been given to the influence of fiscal asymmetric decentralization on household effects. Furthermore, scanty information was found on revenue disparity or financial planning attributes. In addition, not much has been done on fiscal control by subnational governments and self-fiscal reliance as counties continue to rely on funding from the national governments although counties have considerable potential to generate their own revenue. The challenges of comprehensive results are observed, and the study concludes that it appears critical to focus more on analysis that will establish the link of control theory and practice, which will need more firm and integrative study process.