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This paper exploits a natural experiment in Hesse where a reform of the electoral rule from mayor appointment by the local council towards direct mayor elections was introduced during a phase-in period from 1993 to 1998. The end of the term of the last appointed mayor varies across...
Persistent link: https://www.econbiz.de/10010485272
We investigate the geographical concentration of representatives and the distribution of fiscal transfers both theoretically and empirically. We develop a model which predicts that funds to an area are positively correlated with the number of representatives residing in that area. Our empirical...
Persistent link: https://www.econbiz.de/10010489270
Indonesia is currently facing some severe challenges, both in political affairs and in economic management. One of … these challenges is the recently enacted decentralization program, now well underway, which promises to have some wide … scholars, that take a hard, objective look at the many effects of decentralization on economic and political issues in …
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This paper analyzes the efficiency consequences of local revenue policies if jurisdictions try to attenuate the pressures of inter-regional competition for mobile factors by substituting attention-grabbing tax instruments that spotlight an additional tax burden with rather inconspicuous ones. We...
Persistent link: https://www.econbiz.de/10010491115
In many federations, fiscal equalization schemes soften fiscal imbalances across the member states. Such schemes usually imply that a member state internalizes only a small fraction of the additional tax revenue from an expansion of the state-specific tax base, while the remainder of the...
Persistent link: https://www.econbiz.de/10010484391
Federal states in Germany are characterized by low fiscal autonomy. Equalization systems in place balance revenue differences to a considerable extent and states cannot independently set taxes of any major relevance. Although these features of German federalism are notorious for their...
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