Berriel, Rafael; Gonzalez-Aguado, Eugenia; Kehoe, Patrick J. - National Bureau of Economic Research - 2023
We apply ideas from fiscal federalism to reassess how fiscal authority should be delegated within a monetary union. In … about the preferences of their citizens for public spending relative to a fiscal union, a natural generalization of the … classic decentralization result by Oates (1972) applies. Namely, a decentralized fiscal regime dominates a fiscal union, and …