The distribution of competencies between the different levels of a federal system may have remarkable effects on economic growth, because mainly the regions of a country contribute to national economic development. Thus, a government’s economic policy is reasonably shaped along regional lines....

One of the most pertinent reform discussions in Germany is found in the debate on the local business tax. During the last year, two basic reform proposals, a ‚revitalisation‘ of the current local business tax and its replacement by a surcharge on personal and corporate income taxes,...