Navigating Fiscal Federalism: An Empirical Analysis of Intergovernmental Transfers in Urban Policy Frameworks

Abstract

This study investigates the dynamics of intergovernmental fiscal transfers within urban policy frameworks, emphasizing a case study on the Metropolitan City of Milan. Utilizing a mixed-methods approach, the research synthesizes quantitative data from fiscal reports and qualitative interviews with municipal policymakers to elucidate the impact of fiscal decentralization on urban governance. Findings reveal a positive correlation between enhanced intergovernmental transfers and improved policy outcomes in urban health and infrastructure sectors, suggesting that strategic fiscal policies invigorate local governance capacity. This research contributes to the discourse on fiscal federalism by providing actionable insights for policymakers seeking to optimize intergovernmental relations in urban contexts.