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The paper considers governments' public procurement decision as a way of influencing industry structure. In a federation in which capital is mobile and capital taxation is harmonized, a home bias in public procurement can potentially be explained as an effort to increase the capital intensity of...
Persistent link: https://www.econbiz.de/10011443221
We study the welfare effects of a revenue-neutral green tax reform in a federation. The reform consists of increasing a tax on a polluting input and reducing that on labor income. Households are fully mobile within the federation. Regions are unequally endowed with a nonrenewable natural...
Persistent link: https://www.econbiz.de/10010496890
We empirically analyze the determinants of the fiscal decentralization in the European Union. Our approach consists on a quantile regression for the period 2005-2017. The results show the differences in the impact of explanatory variables on the fiscal decentralization by quantiles....
Persistent link: https://www.econbiz.de/10012821280
This paper analyzes the impact of fiscal federalism on income inequality and redistribution. Theoretically …
Persistent link: https://www.econbiz.de/10011942832
The vast majority of federations lack exit clauses. Existing theoretical explanations of this stylized fact focus on issues of credible commitment, signaling, and the risk of strategic exploitation. However, such accounts are unable to explain the adoption by the European Union (EU) of Article...
Persistent link: https://www.econbiz.de/10011884402
minimizing informational spillovers. To address this failure, we introduce a dynamic form of federalism in which the central …
Persistent link: https://www.econbiz.de/10011862030
euro area than in the US, and though the US faces serious state-level fiscal crises. A higher level of fiscal federalism …
Persistent link: https://www.econbiz.de/10010494443
We show that imposition of a state-level environmental tax in a federation crowds out pre-existing federal taxes. We explain how this vertical fiscal externality can lead unilateral state-level environmental policy to generate a welfare gain in the implementing state, at the expense of other...
Persistent link: https://www.econbiz.de/10011753298
This paper takes a mechanism design approach to federalism and assumes that local preferences are the private … information of local jurisdictions. Contractual federalism is defined as a strategy-proof contract among the members of the … coalition manipulations are equivalent to voting rules on uniform policies. -- Federalism ; Asymmetric Information ; Strategy …
Persistent link: https://www.econbiz.de/10008860044
decentralization ; fiscal federalism ; vertical interactions ; partial decentralization ; elections …
Persistent link: https://www.econbiz.de/10009301206