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Can local government spending spur entrepreneurial activity? To answer this question we study a setting where, around multiple pre-determined and non-manipulable thresholds, municipalities with lower tax revenues receive direct and different monetary grants from the national budget. Employing a...
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This paper investigates how state and local fiscal institutions affect the pattern of relative wages between state and … local government employees and their private sector counterparts. It focuses on changes in relative wages during the 1979 … property taxes, and to a lesser extent state-level tax and expenditure caps, public sector wages grew more slowly than the …
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