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Standard models of fiscal federalism suggest many benefits of decentralization in developing economies, and there has been a recent push toward decentralization around the world. However, developing countries presently still have less decentralization, particularly on the revenue side, than both...
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In this paper, the author analyzes the behavior of local governments in capital taxation when the financial choices in …
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competition. Three models are considered: Taxation and Redistribution, Public Goods, and Fixed Prices. In each case, the value …
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