Giving a new answer to an old question, this book shows that fiscal decentralization is a method to disclose the preferences of currently living and future generations for local public goods, to limit the size of the government, and to avoid excessive public debt finance

This paper examines decentralized income redistribution in a federation with strategically competing regions and immobile as well as freely mobile households. The mobile households are altruistic toward the immobile households. The basic point of this paper can be stated as follows: the...