Gegenstand des vorliegenden Beitrages sind die Anreizeffekte des Länderfinanzausgleichs. In methodischer Hinsicht basieren die Analysen auf einem theoretischen Modell des Staatsverhaltens sowie ökonometrischen Paneldatenmodellen. Untersucht werden dabei die Anreizeffekte des...

We provide empirical estimates of the risksharing and redistributive properties of fiscal equalization among the states of the German federation. Fiscal equalization serves as a mechanism to insure state budgets against asymmetric revenue shocks, but provides almost no insurance against regional...

Several recent studies suggest that equalizing transfers in a federal system may distort the tax policy decisions of states. We study this issue for the German federal fiscal system. In a simple theoretical model, we first identify a substitution and an income effect of equalizing transfers. Our...