Contributed articles presented at the two-day National Seminar on "Centre-State Relations in Indian Fiscal Context", organised by the Centre for Economic and Social Studies, Hyderabad, held during November 5-6, 2012

Theories of competitive federalism generally focus on exit as the principal mechanism for making governments responsive to the interests of those who are subject to their powers. This paper draws attention to the necessity to specify more clearly the meaning of “exit” in light of the fact...

We propose a theory of tax centralization and inter governmental grants in politico-economic equilibrium. The cost of taxation differs across levels of government because voters internalize general equilibrium effects at the central but not at the local level. This renders the degree of tax...