We study whether local land use policies are modified in response to enhanced demand for building generated by a new highway, and examine the extent to which this effect of land use regulations affects building activity. We focus on the case of Spain during the last housing boom (1995-2007). We...

We examine whether a corruption scandal in which the incumbent is implicated undermines trust in local government. We use a novel dataset containing information on local corruption scandals reported in Spain during the period 1999-2009, and data on the level of trust expressed in local...

This paper analyses empirically how differences in local taxes affect the intraregional location of new manufacturing plants. These effects are examined within the random profit maximization framework while accounting for the presence of different types of agglomeration economies (localization/...

This article presents a series of novelties with respect to previous studies of the effect of productive infrastructures on output growth. We study public investment in road infrastructures as a determinant of the total factor productivity (TFP) growth for Spanish provinces (NUTS 3) for the...

The aim of this article is to analyse whether Spanish municipalities adjust in response to budget shocks and (if so) which elements of the budget they are more likely to adjust. The methodology we use to answer these questions is a Vector Error Correction Model (VECM), estimated with data from a...

This paper examines the effect of agglomeration economies on the sensitivity of employment location to tax differentials. In the presence of agglomeration economies, when a firm moves into a community attracted by a tax reduction, other firms may decide to follow, implying that agglomeration...

The aim of this paper is to analyze the effect of revenue decentralization on the provision of infrastructure at the sub-national level. We estimate the effects of revenue decentralization and earmarked grant financing on the level of sub-national infrastructure investment in 20 European...

We examine whether state-level incumbents discriminate in the allocation of transfers in favour of local governments controlled by co-partisans, and whether the electoral prospects of local incumbents improve when they are aligned with the state incumbent. Using a new database covering around...

This paper assesses the main arguments of the theory of fiscal federalism (TFF): the impact of decentralization on the efficient delivery of public programs and services. It revises the work included in the so-called 1st generation of work of the TFF, which is essentially theoretical, and those...