unemployment. Only with perfect mobility, this opposing migration effect completely outweighs the pooling effect, and the insurance …

mobility, this opposing migration effect completely outweighs the pooling effect, and the insurance is no longer inefficient …

reallocate. A fiscal equalization scheme that shares the resources saved by limiting costly migration between the regions can …

The paper tries to shed some light on the problems of centralization and decentralization within an economic union and … approaches in inter- or supra-national integration, fiscal federalism and taxation do exist and have to be successfully …

The "Decentralization Theorem" (Oates, 1972) is central to the discussion of fiscal federalism. We revisit the role of … consumption spillovers in evaluating the merits of (de)centralization. Unlike the general prediction, a higher degree of … spillovers may reduce the difference in utility of centralization and decentralization. The non-monotonicity result relates to …

. We identify an important asymmetry between positive and negative externalities and show that centralization may not be … efficient in economies with positive externalities even when regions are identical and centralization does not entail a loss of … accountability. We also show that decentralization can only Pareto dominate centralization in economies with negative externalities. …