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We estimate whether federal aid for state and local governments played a role in advancing population testing for COVID-19 and the administration of vaccines. To overcome biases that can result from the endogeneity of federal aid allocations, we use an instrumental-variables estimator reliant on...
Persistent link: https://www.econbiz.de/10013334424
A classic problem in public finance is the over-expenditure of local governments in expectation of a bailout from higher-level administrations. While monitoring could mitigate agency problems, it can itself be rendered ineffective if auditors are corruptible. I evaluate whether limiting...
Persistent link: https://www.econbiz.de/10013462692
Switzerland could be considered as a test case for international corporate-tax policy coordination. It is a federation of 26 fiscally autonomous cantons that have been taxing corporate profits more or less independently for over a century. We document and discuss corporate taxation in...
Persistent link: https://www.econbiz.de/10014436961
the literature on the role of intergovernmental grants in systems of fiscal federalism. Second, we provide an updated look … directions for future research on the economics of fiscal federalism and the role of intergovernmental grants as policy …
Persistent link: https://www.econbiz.de/10014287352
We study vote trading among U.S. Congress members. By tracking roll-call votes within bills across five legislatures and politicians' personal connections made during the school years, we document a propensity of connected legislators to vote together that depends on how salient the bill is to...
Persistent link: https://www.econbiz.de/10014250186
We develop a framework that examines the organizational challenges faced by central rulers governing large territories, where administrative power needs to be delegated to local elites. We describe how economic change can motivate rulers to empower different elites and emphasize the interaction...
Persistent link: https://www.econbiz.de/10014576570
essay reviews three alternative models of subsidiarity -- decentralized federalism, centralized federalism, and democratic … of local interests in, and the decision-making rules for, the Union. Subsidiarity is to be the guiding principle. This … federalism -- and argues the current European Economic Community has evolved from decentralized to centralized to a fully …
Persistent link: https://www.econbiz.de/10012472252
between the federal and state governments in such a scheme of partial decentralization. Our model suggests that the …
Persistent link: https://www.econbiz.de/10012465415
partial decentralization. A capital poor median voter wants to use capital taxes to provide public goods. This results in …. Decentralization provides such a commitment: local governments avoid using capital taxes due to the pressure of tax competition. We … therefore obtain that the median voter favors a partial degree of decentralization. The equilibrium degree of decentralization …
Persistent link: https://www.econbiz.de/10011986893
We present a model where heterogeneous districts choose both whether to experiment and the policies to experiment with. Since districts learn from each other, the first-best requires that policy experiments converge so that innovations are useful also for neighbors. However, the equilibrium...
Persistent link: https://www.econbiz.de/10012459061