Showing 1 - 10 of 31
The paper addresses the welfare implications of conditional grants if government failure leads to inefficiencies in the production of regional public goods and services. Conditional grants may improve welfare by setting incentives for regions to improve efficiency. At the same time, resources...
Persistent link: https://www.econbiz.de/10005097492
In this paper we use a simple bureaucracy model of fiscal illusion to analyze the impact of intergovernmental grants on the cost efficiency of local jurisdictions. We find that a higher degree of redistribution within a system of fiscal equalization or an increase in the amount of grants...
Persistent link: https://www.econbiz.de/10005097546
In 2009, Germany introduced a new debt rule in its federal constitution (Grundgesetz). The socalled 'debt brake' prescribes a balanced budget for both the federal level and the states. However, the states have leeway regarding transposition and specification of the national requirements into...
Persistent link: https://www.econbiz.de/10010957748
The paper examines the role of the vertical structure of the public sector for economic growth in Germany in a long?term perspective. A theoretical model shows that, due to spillover effects of public service provision across lower level governments, federal government activities could have...
Persistent link: https://www.econbiz.de/10005097558
Tax competition arguments suggest that governements that operate in an open economy (such as local governments) should not and will not rely on non-benefit taxes, such as the income tax. Yet we observe reliance on income taxes by local governments in many countries, and such reliance changes...
Persistent link: https://www.econbiz.de/10005098346
Fiscal federalism in Germany is characterized by lacking sub-national tax autonomy and intensive fiscal equalization. Due to a sunset clause, the current equalization system has to be renegotiated by the year 2019. Against this backdrop, this contribution studies the reform preferences of...
Persistent link: https://www.econbiz.de/10010985648
clear evidence for a causal relationship between economic and European integration and fiscal decentralization in the case …
Persistent link: https://www.econbiz.de/10005097662
A rational financial constitution of the EU should be able to fulfil redistributive objectives at minimum costs. The present financial system of the Community is not compatible with this requirement. After the decisions of the European Council in Berlin on the Agenda 2000 the fundamental flaw of...
Persistent link: https://www.econbiz.de/10005097753
This paper deals with the problems encountered in defining and measuring the degree of fiscal decentralization. Drawing … on a recent analytical framework of the OECD, different measures of fiscal autonomy and revenue decentralization are …-making competencies in the course of time, new time series of annual data on the degree of fiscal decentralization are provided for 23 …
Persistent link: https://www.econbiz.de/10005097757
In a common market with costless mobility of all factors, regional governments can attract mobile firms by granting subsidies which must be financed out of wage taxes on mobile labour. Since firms locate where subsidies are highest and workers settle where taxes are lowest, government are forced...
Persistent link: https://www.econbiz.de/10005097820