How to design the rules of decision making and how should institutions look like? Using causal, empirical analysis this book adds to the discussion by investigating the economic, fiscal, and political effects of institutions at the municipal level. The author analyzes several issues in detail (amongst others): How does the direct election of the mayor (as opposed through election through the municipal council) affect tax rates and spending? Are voting decisions for the mayoral office and the municipal council interdependent and if so how? Does the financial situation of a municipality influence the interest rate the municipality pays on its debt? ukryj opis