We study the Granger causality between the Shapley-Shubik index of voting power and Italian public expenditures from 1960 to 1990. The received wisdom that public expenditures' growth is determined by a cross-action of "all" the political groups elected by proportional electoral systems is not...

We analyze the relationship between senate malapportionment and the allocation of the US federal budget to the states during the period 1978-2002. A substantial literature originating from the in�uential paper by Atlas et al. (1995), using a within estimation methodology �nds that small and...

This paper analyzes fundamental shortcomings in the Georgian legal bases in both the constitution and the tax code with regard to a sustainable fiscal policy. It shows that the lack of experience with sharing political powers and competences among the administrative levels create centralizing...

The Business tax in Germany (German: Gewerbesteuer) has remained a continuous problem in spite of the recent economic boom. There has been a dramatic resurgence of populist voices calling for the abolition of the German Business tax. Regardless of these debates, the structural deficits of the...

Fiscal policy, including its expenditure aspect, is often discussed and analysed from a variety of angles in the literature on public finances, undoubtedly due to the major importance of this topic. However, not all areas of the expenditure part of fiscal policy have been subjected to in-depth...

The present paper introduces a simple alternative two-stage Premium Model to eliminate the distortionary and non-transparent deficits of the recent Premium Model in the federal financial equalization system in Germany. The premium amounts of the recent Premium Model directly influence the...

Bereits seit langer Zeit wird über ein Zuschlagsmodell auf die Einkommen- und Körperschaftsteuer diskutiert, um die Steuerautonomie der Bundesländer zu erhöhen. Die dazu erforderliche Senkung der bundeseinheitlichen Steuersätze führt bei aufkommensneutralen Zuschlagssätzen im...

Fiscal incentive is closely related with the extra-budgetary revenues. Based on our definition of 'fiscal incentive', we explore the impacts of fiscal incentives under decentralisation on responsiveness of public good provision to real local needs. There are also some problems in fiscal...

The relation between per capita public expenditures und population density is implemented in specific population weights, which are used in the German financial equalization schemes. The population weights simulate above-average financial requirements of regions leading to higher transfers. The...

This article examines effectiveness of sub-national borrowing control regimes in maintaining overall fiscal sustainability. The results suggest that regulating sub-national borrowing based on fiscal rules performs most efficiently in maintaining fiscal consolidation. Furthermore, sole reliance...