The paper’s aim is to link two different issues: equalization and fiscal competition. In the model there are two regions: the first one has rich citizens and the other one has poor citizens. Regional representatives in a federal Council must decide on the introduction of an equalization...

I study how the political decision process affects urban traffic congestion policy. First, I look at the case of a single government deciding, through majority voting, on a monetary charge to be paid to drive to a city's Central Business District (CBD): if the majority of individuals prefers to...

Federal transfers can depend on local fiscal capacity which is measured by local tax bases. The aim of this paper is to understand to what extent and how these transfers affect local tax decisions. We develop a model with two provinces producing one mobile good. The good is taxed according to...

Economic integration has intensified international competition to attract productive capital. This paper analyzes, both theoretically and empirically, the effect of tax policies and institutional quality on the allocation of FDI -- two aspects that the economic literature has extensively...