We propose a theory of tax centralization in politico-economic equilibrium. Taxation has dynamic general equilibrium … implications which are rationally internalized at the federal, but not at the regional level. The political support for taxation … spending and taxation and create a role for inter governmental grants. The model provides an explanation for the centralization …

Concurrent taxation is a feature of many federal systems. As a consequence of this fact, the tax policy of one level of …

Concurrent taxation is a feature of many federal systems. As a consequence of this fact, the tax policy of one level of …

We propose a theory of tax centralization and inter governmental grants in politico-economic equilibrium. The cost of … taxation differs across levels of government because voters internalize general equilibrium effects at the central but not at … traditional, expenditure-related motives for centralization considered in the fiscal federalism literature is present. If central …

We propose a theory of tax centralization and inter governmental grants in politico-economic equilibrium. The cost of … taxation differs across levels of government because voters internalize general equilibrium effects at the central but not at … traditional, expenditure-related motives for centralization considered in the fiscal federalism literature is present. If central …