The purpose of this paper is to identify the causal relationship between intergovernmental transfers and fiscal effort. Empirical evidence from Peruvian municipalities supports a negative relation. The substitution effect is decreasing on the level of municipalities’ expenditure and tends to...

No consensus has yet emerged on whether fiscal decentralization facilitates or impedes the growth of the public sector. One explanation for this ambiguity in the literature is that the effect of fiscal decentralization on public sector size depends on the government’s ideology. This paper...

This study explores the evolution of fiscal resource distribution in Pakistan. Pakistan is a federation comprising four provinces, federallyadministered areas, and the Islamabad Capital Territory. Being a central type of government, most of the revenues are collected by the centre and then...

We develop a model with two provinces, producing two goods: one mobile and the other not. The mobile good is taxed according to the destination principle by the local government; it is also federally taxed. People decide to buy the good at the most advantageous price. Namely they can buy...

Nella situazione attuale, gli effetti strutturali del patto di stabilità interno vanno considerati con ogni attenzione. Questi effetti sono “prociclici”: essi aggravano i fenomeni deflattivi che, dopo la crisi del 2008, sono oggi pesantemente in corso. L’analisi statistica condotta mostra...

Article about the problems of municipal governments related to fiscal consolidation in the Russian regions and the construction of the vertical of power during the first presidency of Vladimir Putin. The author analyzes the impact of the decline of the financial base of the city governments and...

A relevant mismatch between tax and expenditure decentralization characterizes many industrialized countries. The former is usually less pronounced than the latter, resulting in asymmetric fiscal decentralization arrangements. We investigate the nature of this asymmetry using a theoretical...

Efforts to maintain balanced budgets lead to substantial pro-cyclicality in states' capital investments, transfers to local governments, and spending in areas like education and transportation. Reliance on volatile revenue sources predicts relatively severe volatility in these expenditures....