allocation of factors and the optimal level of redistribution in the presence of factor mobility. We use a fiscal competition … model a la Wildasin (1991), in which states differ in their technologies and preferences for redistribution. We first … shown to increase total production and the level of redistribution. However, it does not guarantee that all districts gain …

The goal of this paper is to study the effects of introducing income redistribution at the municipal level, with the … decentralizing income redistribution as it may lead to consistent tax manipulation and large distortions in fiscal policy. …

preserve or to create relatively robust forms of fiscal federalism in Western democracies such as Switzerland, Canada, and …