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We extend the literature on local income tax competition by allowing for inter-jurisdictional spillovers and imperfect rivalry in consumption of a publicly provided good. Comparing decentralized second-best results of a theoretical model with an efficient benchmark, we identify three...
Persistent link: https://www.econbiz.de/10011436089
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Scholars have argued about the impact of fiscal decentralisation on public spending for a long time without coming to any firm theoretical and empirical conclusions. In contrast to earlier studies, this paper looks at the impact of fiscal decentralisation across different types of spending. It...
Persistent link: https://www.econbiz.de/10003481020
country s decentralization level serves as a strategic tool through its influence on the mix of horizontal and vertical …
Persistent link: https://www.econbiz.de/10011514157
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The fiscal decentralization impulse now sweeping the world often leads to partial decentralization, where subnational … arrangement, the literature contains no economic analysis of a partial decentralization regime in a Tiebout-style model. This …
Persistent link: https://www.econbiz.de/10013316771
The Decentralization Theorem (Oates, 1972) is central to the discussion of fiscal federalism. We revisit the role of … consumption spillovers in evaluating the merits of (de)centralization. Unlike the general prediction, a higher degree of … spillovers may reduce the difference in utility of centralization and decentralization. The non-monotonicity result relates to …
Persistent link: https://www.econbiz.de/10013316807
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country's decentralization level serves as a strategic tool through its influence on the mix of horizontal and vertical …
Persistent link: https://www.econbiz.de/10001733378