The COVID-19 pandemic has put immense pressure on the fiscal situation. Central revenues have decelerated while expenditures had to be increased to facilitate economic recovery. Local governments faced even harder challenges as intergovernmental transfers were reduced and room for mobilizing...

The relevance of this research is based on the implications of low financial autonomy of rural municipalities referred to by the researchers, economists, and policymakers. The phenomenon of financial autonomy of municipalities is widely declared in the legal documents of the European Union (EU),...

With the renewed interest in cities as economic centers comes a need to understand how local public services and local taxes are likely to affect city economic performance. This paper provides an equilibrium model of an open city economy with mobile firms and resident workers. Given household...