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In a monetary union, the interaction between several governments and a single central bank is plagued by several sources of deficit bias, including common pool problems. Each government has strong preferences over local spending and taxation but suffers only part of the costs of union-wide...
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We extend the literature on local income tax competition by allowing for inter-jurisdictional spillovers and imperfect rivalry in consumption of a publicly provided good. Comparing decentralized second-best results of a theoretical model with an efficient benchmark, we identify three...
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Decentralization can be generally described as a process in which selected functions are assigned to sub-national units …. The literature identifies number of positive consequences of decentralization which all lead to better satisfaction of … citizens? needs for public services. Although decentralization process in Croatia started more than 10 years ago, it still has …
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