From the literature on decentralization, it appears that the fiscal vertical imbalance is somehow inherent to multi-level governments. Using a stylized model we show that this leads to a reduction in the extent of redistributive fiscal policies if the maximal tolerable size of government has...

In this article we use the high-quality data coming from the Luxembourg Income Study Project, in a panel framework, to test for the effects of electoral systems on both poverty and income inequality. We find that when de degree of proportionality of an electoral system increases, inequality and...