In many countries organized as federations, fiscal-equalization schemes have been implemented to mitigate vertical or horizontal imbalances. Such schemes usually imply that the member states of the federation can only partly internalize marginal tax revenue before redistribution. Aside from this...

This paper considers some facets of the recent Brazilian experience in fiscal decentralization. For this purpose, it describes the pattern of fiscal decentralization in Brazil and, subsequently, discusses some events of the nineties pertaining to fiscal relations in the federation. Historically,...

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...

In der Diskussion um die Reform der föderalen Finanzverfassung wird oft eine Stärkung der Steuerautonomie der Länder gefordert. Seitens der Befürworter wird die damit verbundene Ausweitung der Eigenverantwortlichkeit begrüßt, von der stärkere Anreize für eine solide Haushaltspolitik und...

The paper examines the role of the vertical structure of the public sector for economic growth in Germany in a long-term perspective. A theoretical model shows that, due to spillover effects of public service provision across lower level governments, federal government activities could have...

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,...