The course provides students with elements for analyzing the financial relations at different government levels, concentrating especially on the Italian institutional system.The following points will be discussed:The economic theory of de-centralized governmentModels of territorial government and advantages of de-centralizationAllocation of functions at different levels of government and models of de-centralized systemsThe normative theory for the assignment of expenditure functionsAssignment of functions and development of de-centralized systemsHow local governments are establishedFinancing local governments: taxes and grantsThe system of local authorities in Italy