The article aims to develop a literature review of decentralization, focused on the Brazilian case, emphasizing the importance of the new institutionalism assumptions in understanding this issue. Considering the specific aspects of our federalism, there is a consensus in the literature about the need to observe institutional factors such as constitutional rules, strategies to induce cooperation, federative relations rules, among others. The phrase usually mentioned in social science is that 'institutions matter' in the policy studies. Indeed, this postulate seems consolidated, however the researcher challenges should focus on identifying institutions and their effects over the decentralization process, surpassing the normative dominance through valid and consistent methodologically research. Therefore, this article outlines how assumptions of three major versions of the institutional theory fit as an analytical tool and valid methodology for analyzing crucial issues to the theme, such as the causes and determinants of decentralization and its notorious proliferation. The goal is not to exhaust the subject, instead, is to highlight the range of possibilities that this theory offers, especially for the progress of positive research.
public policies; decentralization; new institutionalism; methodology