We propose a theory of tax centralization in politico-economic equilibrium. Taxation has dynamic general equilibrium … spending and taxation and create a role for inter governmental grants. The model provides an explanation for the centralization …

We propose a theory of tax centralization and inter governmental grants in politico-economic equilibrium. The cost of … traditional, expenditure-related motives for centralization considered in the fiscal federalism literature is present. If central … the local level. This renders the degree of tax centralization and the tax burden determinate even if none of the …

We propose a theory of tax centralization and inter governmental grants in politico-economic equilibrium. The cost of … traditional, expenditure-related motives for centralization considered in the fiscal federalism literature is present. If central … the local level. This renders the degree of tax centralization and the tax burden determinate even if none of the …