municipalities. Using the quasi-random assignment, we examine whether these contributing municipalities adjust their tax setting … increase is even higher than the expansion of spending. Municipalities additionally refrain from increasing tax rates. The …

Baden-Württemberg for the 1994-2014 period, I test the GFH for tax rates, the growth in government debt as well as …

We investigate the effect of general-purpose transfers on different expenditure categories and tax rates in the …

expenditures but do not reduce tax rates. Extra money from transfers is mainly used to finance social expenditures and public …