How does the transfer of federal revenue to subnational governments affect revenue-raising behavior at the subnational level? This paper uses education finance data to examine the relationship between fiscal federalism, ethnic diversity, and the behavior of local governments in public goods...

The aim of this paper is to discuss the process of regional convergence within the framework of an overlapping generations model in which the engine of growth is the accumulation of human capital. In particular, we consider different education funding systems and compare their performance in...