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In assessing the desirability for tax decentralization reforms, a dilemma between efficiency and redistribution emerges. By limiting the ability of the central government to redistribute resources towards regions in financial needs, decentralization curbs incentives for excessive subnational...
Persistent link: https://www.econbiz.de/10011997044
This paper offers a complementary empirical approach that might be better suited to identify the extent of political favoritism in a multi-decision-maker institution than the standard identification strategy. The typical diff-in-diff identification strategy to estimate political favoritism,...
Persistent link: https://www.econbiz.de/10012119775
This paper analyzes the impact of fiscal federalism on income inequality and redistribution. Theoretically contradicting arguments ask for empirical evidence to obtain a better knowledge of this relationship. We rely on the institutional setting in Switzerland to study the issue empirically....
Persistent link: https://www.econbiz.de/10011942832
We study the welfare effects of a revenue-neutral green tax reform in a federation. The reform consists of increasing a tax on a polluting input and reducing that on labor income. Households are fully mobile within the federation. Regions are unequally endowed with a nonrenewable natural...
Persistent link: https://www.econbiz.de/10010496890
Recent theoretical research suggests that financing sub-national governments’ expenditure out of own revenue sources is linked to more responsible budgeting, because the financial implications of spending decisions then are internalized within a jurisdiction. We test this proposition...
Persistent link: https://www.econbiz.de/10010498622
Fiscal federalism may not be a panacea in a monetary union if it does not address the non-cooperative behaviour between fiscal policymakers. To prove this, we assess the relative merits of a fiscal federalism scheme in a monetary union and intergovernmental fiscal cooperation without such a...
Persistent link: https://www.econbiz.de/10011749988
Using data on federal highway grants from the Department of Transportation's Federal Highway Administration, this paper investigates several questions regarding the political economy of highway funding. We investigate the period 1994 - 2008 and examine whether political alignment and political...
Persistent link: https://www.econbiz.de/10011704667
Swiss cantons and explicit fiscal transfers between the federal government and the cantons. Based on panel-data analysis we … study the redistributive and stabilizing properties of fiscal equalization transfers, federal government transfers in … cantons translate into differences of long-run disposable income after taxes and transfers of about 80 cents. The combined …
Persistent link: https://www.econbiz.de/10011795017
cities and towards remote areas with low productivity. But despite this output loss, fiscal transfers may still raise …
Persistent link: https://www.econbiz.de/10011844560
in established democracies has largely been neglected. We integrate regional resource value and inter-regional transfers …
Persistent link: https://www.econbiz.de/10011929646