Disadvantages of decentralization are

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Quizplus · Accepted Answer

All of the options listed are disadvantages of decentralization. Intercommunity externalities refer to the negative impacts that one jurisdiction's decision can have on neighboring jurisdictions, which can be magnified in a decentralized system. Forgone scale economies refer to the potential for larger authorities to efficiently provide public goods and services due to their larger size and scope. Inefficient taxation refers to the potential for unequal, inefficient, or insufficient revenue collection in a decentralized system. Finally, the lack of ability to redistribute income refers to the challenges of providing and financing social safety net programs across multiple authorities.

Disadvantages of Decentralization Are