This paper studies optimal redistribution among two different regions in a federal state. Regional governments supply local public goods financed with distorting local taxes. They have better information on their tax bases than the federal government. We model this both as an adverse selection...

Dati gli ampi divari di basi imponibili esistenti tra le regioni italiane, è necessario che il decentramento fiscale sia accompagnato da un sistema di perequazione a favore delle regioni più povere. Il dibattito italiano sul "federalismo fiscale" condivide questa necessità, ma non discute in...

This paper studies optimal redistribution among two different regions in a federal state. Regional governments supply local public goods financed by distorting local taxes. They have better information on their tax bases than the federal government. We model this both as an adverse selection...