Facchini, Giovanni; Testa, Cecilia - In: The Quarterly Review of Economics and Finance 48 (2008) 2, pp. 333-344
This paper develops a simple two-period model of public good provision within a federation. A national public good is provided to both states by the federal government, while a local public good is supplied by each state government. The federal government levies a proportional income tax, and in...
