Showing 1 - 10 of 15
Studies examining pension distribution choices have found that the tendency of private-sector workers is to select lump sum distributions instead of life annuities resulting in leakage of retirement savings. In the public sector, defined benefit pensions usually offer lump sum distributions...
Persistent link: https://www.econbiz.de/10010786494
Numerous theories posit that the fiscal decisions of one jurisdiction influence the fiscal decisions of its neighbors. The main contribution of this paper is to address empirical difficulties in testing for spillovers using a regression discontinuity design on a newly collected dataset. I...
Persistent link: https://www.econbiz.de/10010744255
The Tiebout model has been the reference point for the classical approach to fiscal federalism. Its emphasis on mobility, benefit taxation, and the advantages of fiscal competition have informed fiscal federalism since the seminal contributions of Musgrave and Oates. This paper reviews the...
Persistent link: https://www.econbiz.de/10010595032
Though the traditional literature in fiscal federalism argues that the Federal government should have primary responsibility for income redistribution, U.S. states are in fact actively engaged in redistribution. This paper develops a positive model of the respective roles of state and Federal...
Persistent link: https://www.econbiz.de/10010595035
This paper contributes to the discussion on Separate Accounting versus Formula Apportionment in the corporate income taxation of multinational enterprises. The innovation is that we consider a general equilibrium tax competition model with an endogenous interest rate. In contrast to previous...
Persistent link: https://www.econbiz.de/10010574289
We test the premise of the theoretical literature that M-form political hierarchies are effective in creating yardstick competition between regional divisions only when those divisions have sufficiently diversified or similar industrial composition. The reason for this is that the competition...
Persistent link: https://www.econbiz.de/10010574326
The economics of fiscal federalism has identified two book-end departures from first-best provision of a public good. Local governments may respond to local conditions, but ignore inter-jurisdictional spillovers. Alternatively, central governments may internalize spillovers, but impose uniform...
Persistent link: https://www.econbiz.de/10010574349
Previous literature widely assumes that taxes are optimized in local public finance while expenditures adjust residually. This paper endogenizes the choice of the optimization variable. In particular, it analyzes how federal policy toward local governments' influences the way local governments...
Persistent link: https://www.econbiz.de/10010574357
This paper investigates the relationship between the size of interest groups in terms of voter representation and the interest group's campaign contributions to politicians. We uncover a robust hump-shaped relationship between the voting share of an interest group and its contributions to a...
Persistent link: https://www.econbiz.de/10010574364
Interjurisdictional competition over mobile tax bases is an easily understood mechanism, but actual tax-base elasticities are difficult to estimate. Political pressure for reducing tax rates could therefore be based on erroneous estimates of the mobility of tax bases. We show that tax...
Persistent link: https://www.econbiz.de/10011056118