This paper examines empirically the strategic interactions among central and subcentral governments when incomplete information forces the subcentral government to form expectations about the amount of transfers that it will receive from the central one. The empirical analysis features a wide...

This paper analyses intergovernmental transfers in France and Italy to assess how soft budget spending behaviors may result from slacks in institutional constraints or from phenomena related to political culture, like administrative practices or implementation of rules. It innovates on the...

This paper analyses intergovernmental transfers in France and Italy to assess to which extent soft budget spending behaviors result from slack in fiscal constraints or from political factors. It innovates on the previous literature, which concentrated on single countries, by adopting a...