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actually favors stabilization. In an empirical analysis for Germany, the paper adds support for the finding of significant … regional stabilization by fiscal flows. The results indicate that about 17 % of GDP variation across West Germany's states has … been removed by fiscal flows during the last two decades. Thus, in Germany where the fiscal federalism is criticised for …
Persistent link: https://www.econbiz.de/10011442662
Fiscal federalism in Germany is characterized by lacking sub-national tax autonomy and intensive fiscal equalization …
Persistent link: https://www.econbiz.de/10010203498
in Germany. The results suggest that attempts of state level governments to extract fiscal resources from the local …
Persistent link: https://www.econbiz.de/10003301132
This paper uses a simple model of fiscal competition between local jurisdictions to analyse the impact of intergovernmental grants on the composition of public spending. We find that a higher degree of redistribution within a system of ʺfiscal equalisationʺ coincides with a smaller overall...
Persistent link: https://www.econbiz.de/10003412064
In this paper we use a simple bureaucracy model of fiscal illusion to analyze the impact of intergovernmental grants on the cost effciency of local jurisdictions. We find that a higher degree of redistribution within a system of fiscal equalization or an increase in the amount of grants received...
Persistent link: https://www.econbiz.de/10003728661
This paper analyzes the distribution of discretionary transfers from higher tiers of government in the process of fiscal adjustment in local jurisdictions which were hit by a negative revenue shock in formula transfers. Spanish local governments experienced a 30% fall in their revenue-sharing...
Persistent link: https://www.econbiz.de/10011499738
The paper addresses the welfare implications of conditional grants if government failure leads to inefficiencies in the production of regional public goods and services. Conditional grants may improve welfare by setting incentives for regions to improve efficiency. At the same time, resources...
Persistent link: https://www.econbiz.de/10003721786
In a common market with costless mobility of all factors, regional governments can attract mobile firms by granting subsidies which must be financed out of wage taxes on mobile labour. Since firms locate where subsidies are highest and workers settle where taxes are lowest, government are forced...
Persistent link: https://www.econbiz.de/10011443380
More than one third of the European Union's total budget is spent on socalled Cohesion Policy via the structural funds. Its main purpose is to promote the development of the EU and to support convergence between the levels of development of the various European regions. Investigating the impact...
Persistent link: https://www.econbiz.de/10003881569
The paper analyzes how geographical clustering of beneficiaries might affect the effectiveness of public innovation support programs. The geographical proximity of firms operating in the same industry or field of technology is expected to facilitate innovation through knowledge spillovers and...
Persistent link: https://www.econbiz.de/10011570574