# kaal:claim:3808852-033

**Claim.** Decentralization is not always efficient, because centralized economies of scale can create the near-optimal efficiencies for economic growth and decentralization may therefore result in the loss of economies of scale.

**Type.** failure  **Support.** argued

**Source quote.**

> In fact, decentralization may not always be efficient as centralized economies of scale create the near-optimal efficiencies for economic growth.

**From.** Wulf A. Kaal, *Decentralization and Feedback Effects* (2021), V. Governmental Decentralization, page 21

**Cite as.** Wulf A. Kaal, Decentralization and Feedback Effects (2021). SSRN: https://ssrn.com/abstract=3808852

**Verify.** sha256 of source PDF `31e91158fdeefebc2f0be54ebf89751f7cdd4c89ecea932888f5ba9be6b1caba` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202021%20-%20Decentralization%20and%20Feedback%20Effects.pdf

**Failure mode.** loss of economies of scale  (family: scalability-and-throughput-limit)

**Topics.** economics, decentralization

**Keywords.** economies-of-scale, efficiency, governmental-decentralization, decentralization-limits

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