Several recent studies suggest that equalizing transfers in a federal system may distort the tax policy decisions of states. We study this issue for the German federal fiscal system. In a simple theoretical model, we first identify a substitution and an income effect of equalizing transfers. Our...

Several recent studies suggest that equalizing transfers in a federal system may distort the tax policy decisions of states. We study this issue for the German federal fiscal system. In a simple theoretical model, we first identify a substitution and an income effect of equalizing transfers. Our...

Regional fiscal equalization in Germany aims to reduce fiscal disparities by allocating financial resources to less promising regions in order to support the supply of public goods. This paper aims to analyse secondary economic effects of regional fiscal equalization on several economic in- and...

Anfang März hat die Bundesregierung zwei Gesetzentwürfe zur Föderalismusreform in das Gesetzgebungsverfahren eingebracht, die im Wesentlichen auf dem Ende 2004 gescheiterten Reformentwurf der gemeinsamen Kommission von Bundestag und Bundesrat zur Modernisierung der bundesstaatlichen Ordnung...

Der für diese Legislaturperiode geplante zweite Teil der Föderalismusreform bietet die Chance eines grundlegenden Systemwechsels. Wie können die widerstreitenden Finanzinteressen der Bundesländer mit den Anforderungen an die Anreizeffizienz des Systems in Einklang gebracht werden?

This paper tests several theories of the effects of congressional representation on state economic growth. States that were represented by very senior Democratic congressmen grew more quickly during the 1953-1990 period than states that were represented by more junior congressional delegations....