This study provides an empirical investigation of fiscal interactions in the context of a developing country. I examine three fiscal components - budget balance, tax revenue, and public spending - to measure spatial interactions between Colombian municipalities from 2000 to 2010. I am using...

Finding a definitive answer to the question of whether fiscal redistribution is harmful or beneficial for regional economic performance is not straightforward. This paper disentangles the key components of fiscal redistribution in a regional Canada-US setting. Redistributive spending is...

Many countries operate pronounced fiscal equalization schemes that shift tax revenue across jurisdictions. We use a general equilibrium model with multiple asymmetric regions, costly trade and labor mobility to carve out the aggregate implications of this policy. Calibrating the model for...