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Bordignon, Massimo - 1999

Should the constitution of a federation allow for peaceful secession? Constitutionally defined secession rules are … benefit from the perceived long-term stability of the federation and constitutionally defined secession rules increase the … secession rules. If transfers are costly, the trade off is present even if ex post renegotiation is allowed. Finally, we show …

Persistent link: https://www.econbiz.de/10013428275

Optimal fiscal substitutes for the exchange rate in a monetary union

Kaufmann, Christoph - 2016

This paper studies Ramsey-optimal monetary and fiscal policy in a New Keynesian 2-country open economy framework, which is used to assess how far fiscal policy can substitute for the role of nominal exchange rates within a monetary union. Giving up exchange rate flexibility leads to welfare...

Persistent link: https://www.econbiz.de/10011561923

Some Canadian-U.S. evidence on the insulating properties of a flexible exchange rate

Backus, David - 1983

Persistent link: https://www.econbiz.de/10000347674

Citizens' trade-offs in state merger decisions : evidence from a randomized survey experiment

Blesse, Sebastian; Heinemann, Friedrich - 2019

Voters dealing with jurisdictional merger decisions face a trade-off between economies of scale and preference costs. Larger jurisdictions may offer cost advantages, yet the downside is that policies in larger units may be less aligned to voter preferences. Our study is the first to provide...

Persistent link: https://www.econbiz.de/10012129397

Vertical income tax externalities and fiscal interdependence : evidence from the US

Esteller-Moré, Álex; Solé-Ollé, Albert - 1999

Concurrent taxation is a feature of many federal systems. As a consequence of this fact, the tax policy of one level of government affects the tax base of the other. This paper carries out a theoretical analysis of the interdependent tax-setting decisions of federal and regional governments,...

Persistent link: https://www.econbiz.de/10013428252

Federation's alternative tax constitutions and risky education

Poutvaara, Panu - 1999

We analyze a two-period modell where risk-averse students divide their time between risky education, leisure, and work. The educated can migrate. Wagetax financed transfer to students acts as an insurance, and increases both investment in education and demand for leisure. We drive sufficient...

Persistent link: https://www.econbiz.de/10013428263

Public procurement in the presence of capital taxation

Weichenrieder, Alfons J. - 1999

The paper considers governments' public procurement decision as a way of influencing industry structure. In a federation in which capital is mobile and capital taxation is harmonized, a home bias in public procurement can potentially be explained as an effort to increase the capital intensity of...

Persistent link: https://www.econbiz.de/10013428266

Transmission of global financial shocks to EMU member states : the role of monetary policy and national factors

Gelman, Maria; Jochem, Axel; Reitz, Stefan - 2016

The paper analyses the transmission of global financial shocks to individual member states of the European Monetary Union (EMU), in which monetary policy is delegated to the ECB and financial markets are fully integrated. Using a panel VAR model, we show that the asymmetric effects of global...

Persistent link: https://www.econbiz.de/10011495568

Cross-border banking and business cycles in asymmetric currency unions

Dräger, Lena; Proaño Acosta, Christian - 2015

Against the background of the recent housing boom and bust in countries such as Spain and Ireland, we investigate in this paper the macroeconomic consequences of cross-border banking in monetary unions such as the euro area. For this purpose, we incorporate in an otherwise standard two-region...

Persistent link: https://www.econbiz.de/10011299044

Is it really more dispersed? : measuring and comparing the stress from the common monetary policy in the euro area

Quint, Dominic - 2014

The ECB's one size monetary policy is unlikely to fit all euro area members at all times, which raises the question of how much monetary policy stress this causes at the national level. I measure monetary policy stress as the difference between actual ECB interest rates and Taylor-rule implied...

Persistent link: https://www.econbiz.de/10010349426