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This paper analyzes the impact of fiscal federalism on income inequality and redistribution. Theoretically … setting in Switzerland to study the issue empirically. According to our findings tax decentralization tends to reduce … consider the interdependence of decentralization and fragmentation as inequality decreasing effects of decentralization are …
Persistent link: https://www.econbiz.de/10011942832
This paper analyzes the impact of fiscal federalism on income inequality and redistribution. Economic theory delivers … on the ideal institutional setting of federalism in Switzerland. According to our findings, decentralization actually … the interdependence of decentralization and fragmentation, since the inequality decreasing effect of fiscal …
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Sub-national governments often finance substantial parts of their budgets via taxes on capital or other mobile factors - despite having access to alternative, less distortionary, revenue sources. This paper develops three hypotheses to explain this pattern and tests them in a natural experiment...
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High debt autonomy and low tax autonomy often characterize evolving federations, making the bailout hypothesis very attractive in resolving subcentral government deficits. However, meeting both conditions is not enough to conclude that bailout expectations are the main reason for a potential...
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