Capitalization of the property tax is of particular interest in Norway since many local governments decide not to have a property tax. We apply a rich data set of housing transactions and characteristics for three years (1997–1999) and combine them with local government-level data about...

The aim of this note is to show that the fiscal illusion model of Wallace Oates unambiguously predicts a flypaper effect. The original contribution does not reach this result because equal increases in the lump-sum grant and the income of the median voter are compared. When the correct...

The constitutional choice between single-purpose and multi-purpose authorities is analyzed in a model describing the local decision-making process as a game between a sponsor, representing the voters, and two bureaus. The bureaus are able to influence public decisions by using private...

Fiscal discipline is a concern because of possible spending and deficit bias in fiscal and political institutions. This study investigates adjustments under fiscal federalism, concentrating on decentralized government in Denmark and allowing for a comparison with neighbors Norway and Sweden and...

The paper integrates two mechanisms of economic growth, barriers to international spillovers and skill - biased effects on the income distribution. South Africa is an interestin g case study because of dramatic changes in international barriers over time and policy focus to productivity and...