minimizing informational spillovers. To address this failure, we introduce a dynamic form of federalism in which the central …

This paper analyzes the impact of fiscal federalism on income inequality and redistribution. Theoretically … setting in Switzerland to study the issue empirically. According to our findings tax decentralization tends to reduce … consider the interdependence of decentralization and fragmentation as inequality decreasing effects of decentralization are …

rivalry in consumption of the publicly provided good. We identify three sources of welfare loss from decentralization … characteristics of the publicly provided good are an important determinant for the welfare costs of decentralization. …

. We show the potential existence of a poverty trap as a result of decentralization in taxation decisions. …

the literature on the role of intergovernmental grants in systems of fiscal federalism. Second, we provide an updated look … directions for future research on the economics of fiscal federalism and the role of intergovernmental grants as policy …