Ogawa, Hikaru; Yakita, Sayaka - In: FinanzArchiv: Public Finance Analysis 65 (2009) 1, pp. 122-140
This paper analyzes the fiscal decentralization and equalization transfers in a two-region model of endogenous growth. In our model, two levels of government with different objectives are considered: the local governments maximize the utility of the residents of the region, and the central...