n the first sense, decentralisa-tion may be used to mean that policies are differentiated according to thecircumstances of different regions and localities. The considerable literature on thetopic of ‘fiscal federalism’ sparked by the classic article of Tiebout (1956), hasdealt largely with this sense of decentralisation. Tiebout claimed that, undercertain circumstances, competition between jurisdictions supplying rival combina-tions of local public goods would lead to an efficient supply of such goods.