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Sending the pork home : birth town bias in transfers to Italian municipalities
Carozzi, Felipe; Repetto, Luca - 2015
transfers. Using a panel of municipalities for the years between 1994 and 2006, we find that municipal governments of …
Persistent link: https://www.econbiz.de/10011349086
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Fiscal federalism, taxation and grants
Gonzalez-Eiras, Martín; Niepelt, Dirk - 2016
We propose a theory of tax centralization and inter governmental grants in politico-economic equilibrium. The cost of taxation differs across levels of government because voters internalize general equilibrium effects at the central but not at the local level. This renders the degree of tax...
Persistent link: https://www.econbiz.de/10011523762
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Electoral competition as a determinant of fiscal decentralization
Jametti, Mario; Joanis, Marcelin - 2011
Fiscal decentralization is high on the agenda in policy fora. This paper empirically investigates the underlying causes of fiscal decentralization, based on the predictions of a simple political economy model. We argue that the likeliness that a central government engages in devolution of powers...
Persistent link: https://www.econbiz.de/10009301206
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Free-riding or internalizing? : an opportunistic view on decentralization versus centralization
Fiorillo, Fabio; Sacchi, Agnese - 2011
The aim of the paper is to analyze a model of local public good provision with positive interjurisdictional spillovers comparing decentralized and centralized system. As in the recent Second Generation Theory (SGT) of fiscal federalism (Seabright 1996; Lockwood 2002, 2006; Besley and Coate 2003; Weingast...
Persistent link: https://www.econbiz.de/10009009661
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Gerontocracy revisited : unilateral transfer to the young may benefit the middle-aged
Poutvaara, Panu - 2001
It has been argued that in the absence of altruism, intergenerational transfers can survive only if the old are net recipients. I prove that this need not hold in an over-lapping generations model with a fixed factor. For example, the middle-aged owning land may gain by providing public...
Persistent link: https://www.econbiz.de/10011398916
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Local favoritism in at-large proportional representation systems
Fiva, Jon H.; Halse, Askill - 2015
, we still find a hometown bias. We document that municipalities with a representative on the regional council from the … particularistic benefits. Both effects are driven by municipalities with below median population size. …
Persistent link: https://www.econbiz.de/10011343734
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Political economy of fiscal unions
Fidrmuc, Jan - 2013
I formulate a political-economy model of a fiscal union where the threat of secession imposes a limit on fiscal redistribution between regions. I argue that the trade-off between implementing the region's preferred fiscal policy and benefiting from inter-regional risk sharing depends on the...
Persistent link: https://www.econbiz.de/10009772825
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How to tame two Leviathans? : revisiting the effect of direct democracy on local public expenditure
Galletta, Sergio; Jametti, Mario - 2012
the fact that both states (cantons) and local governments (municipalities) enjoy a high autonomy in setting their degree … distinguish the effect of state direct democracy on local expenditures for municipalities with and without own direct democratic … instruments. Considering 119 municipalities belonging to 22 Swiss cantons for the period 1993-2007 we highlight that …
Persistent link: https://www.econbiz.de/10009665388
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Elections and de facto expenditure decentralization in Canada
Jametti, Mario; Joanis, Marcelin - 2014
This paper empirically investigates the underlying determinants of expenditure decentralization, based on the predictions of a new political economy model of partial decentralization. The analysis is based on an agency model, in which two levels of government are involved in the provision of a...
Persistent link: https://www.econbiz.de/10010354073
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Effects of fiscal rules : 85 years' experience in Switzerland
Burret, Heiko T.; Feld, Lars P. - 2016
The paper investigates the fiscal effects of Swiss cantonal debt brakes by taking explicitly into account the rules' coverage. An in-depth analysis provides unique evidence that suggests the following: First, fiscal rules at the cantonal level have a negative effect on public deficits, which is...
Persistent link: https://www.econbiz.de/10011523766