We show that warm-glow motives in provision by competing suppliers can lead to inefficient charity selection. In these situations, discretionary donor choices can promote efficient charity selection even when provision outcomes are non-verifiable. Government funding arrangements, on the other...

While numerous studies analyse the determinants of the level and composition of local public spending, little attention has been given to what shapes the choice of tax instruments used by decentralised governments. This paper bridges this gap by investigating the economic and political...