Looking at the Belgian federation, where 10% of the working population commutes across the borders of three small regions, a case can be made for studying commuting flows in a federal constellation. In this paper, commuting is introduced to a federal setting where an ad valorem residence based...

This paper revisits the soft budget constraint problem arising in decentralised countries. Capturing the specific dynamics of political decision making in a federation, new light is shed on the incentives at work when lower-level (state) governments overborrow and are bailed out by the federal...

In this paper, commuting is introduced to a federal economy where benevolent lower-level (state) governments levy an ad valorem tax on labour income. This results in inefficiently low levels of taxation, even when households as a whole do not migrate. Indeed, rather than attracting more workers...

In fiscally centralised countries with a unique country-wide income tax schedule, it is straightforward to quantify the degree of progressivity. In fiscally decentralised countries with varying local tax schedules, however, this is not the case. In these countries, the effective tax...

Benefits of federation are in more flexible use of the social and economic potential of its subjects at wide inter-regional competition. The federal system allows to use effects of either greater economic space or more complete considering of local conditions and interests. Specificity of modern...

The paper considers the influence of federal government expenditures and transfers on interregional convergence in gross regional product (GRP) per capita and wages in Russia over 2005-2011. Such an influence is not found. The federal government's policy was reactive and was not focused on...

Scotland is engaged in a lively and on-going debate on greater fiscal autonomy and independence, which is politically controversial, especially in respect of tax-varying powers. The Scottish Parliament has the power to make a balanced-budget adjustment in public expenditure by varying the basic...

Distribution of fiscal income among municipalities - which are constitutionally federal official entities in Brazil - is highly unequal. Given conurbation processes and intense urbanization in the second half of the past century, some municipalities concentrate resources and quality public...

The tax auditing parameters have scarcely been analyzed by the literature as relevant policy-making instruments; however the enforcement strategies are crucial elements of the tax burden. In this paper we show that in a federal framework the tax auditing policies could represent additional tools...