The paper presents an investigation of subnational government bailouts in Germany. In a first part we briefly describe the fiscal federalism system in Germany. The main part of the paper examines the bailout of two West German states. We identify the causes of the financial trouble of both...

The paper presents an investigation of subnational government bailouts in Germany. In a first part we briefly describe the fiscal federalism system in Germany. The main part of the paper examines the bailout of two West German states. We identify the causes of the financial trouble of both...

This paper investigates the long-term trend and the underlying determinants of public sector centralization in Germany from 1871 until today. The institutional and the quantitative review of the German history provides no conclusive evidence for a continuous process of government centralization...