The Local Fiscal Autonomy from the Perspective of Constitutional Economics Theory

The constitutional economics theory examines how government’s power and authority could be limited and how should be limited. in this context, through the instrument of economic constitution, it is argued by constitutional economists that, a certain part of government’s tax-raising power should be transferred to local governments. this study aims to analyse the transfer of governments’ tax-raising powers to local governments in unitary and federal states and to research the local fiscal autonomy phenomenon in its positive and negative aspects from an objective point of view