State borders create a discontinuous tax treatment of retail sales. In a Nash game, local tax rates will be higher on … the low-state-tax side of a border. Local taxes will decrease from the nearest high-tax border and increase from the low-tax … border. Using driving time from state borders and all local sales tax rates, local tax rates on the low-tax side of the …

regional and federal public goods and the benevolent central government implements interregional earmarked and income transfers … interregional income and earmarked transfers to equate consumption of private and regional public goods across regions. Such … leadership is efficient if the center adopts redistributive interregional income and earmarked policies and there is a common …

We propose a theory of tax centralization and inter governmental grants in politico-economic equilibrium. The cost of … the local level. This renders the degree of tax centralization and the tax burden determinate even if none of the …

redistributive effect of these mechanisms of about 20%. This means that long-run income differentials of 1 Swiss Franc between … cantons translate into differences of long-run disposable income after taxes and transfers of about 80 cents. The combined … contemporary stabilization effect with respect to short-term income fluctuations amounts to less than 10%, which is a small effect …

positive, however, capital tax rates are inefficiently low in the decentralized equilibrium …

) with a less transparent one (a surcharge on the personal income tax). Theoretical analysis suggests this should give …A 1999 reform allowed Italian Mayors to partially substitute a more accountable source of tax revenue (the property tax …