We propose a theory of tax centralization and inter governmental grants in politico-economic equilibrium. The cost of … differently across levels of government, inter governmental grants become relevant. Calibrated to U.S. data, our model helps to … explain the introduction of federal grants at the time of the New Deal, and their increase up to the turn of the twenty …

We propose a theory of tax centralization and inter governmental grants in politico-economic equilibrium. The cost of … differently across levels of government, inter governmental grants become relevant. Calibrated to U.S. data, our model helps to … explain the introduction of federal grants at the time of the New Deal, and their increase up to the turn of the twenty …

impact of political forces in the allocation of grants from the central government to local authorities. Empirical results … also condition the granting system: (1) grants increase in municipal and legislative election years; (2) the larger the … ruled by mayors that belong to the prime-minister’s party are favored in the grants distribution process. Keywords: grants …

When investigating the effects of federal grants on the behavior of lower-level governments, it is hard to defend the … handling of grants as an exogenous factor affecting local governments; federal governments often set grants based on … order to estimate the causal effects of general intergovernmental grants on local spending and local tax rates. The formula …

properly managed, perform better than either loans or grants taken in isolation. The core of the intuition, which we develop in …

the panel's results and recommendations. Most significant, a combined use of public municipal grants, JESSICA …