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In the aftermath of the financial crisis, with periphery countries in the European Union even more falling behind the core countries economically, there have been quests for various kind of fiscal policies in order to revert divergence. How these policies would unfold and perform comparatively...
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between central and local governments. By numerical simulations, we show that the optimal fiscal federalism should impose …
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tax revenue is more than enough to pay for public abatement R&D. Second, tax distortions and externalities substantially …
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