This paper deals with a specific vertical assignment of public functions in a federation: Two levels of government share both the same tax source and expenditure on a productivity increasing public service. We consider surplus maximizing Leviathan governments which provide public services in...

The conventional theoretical and empirical references related to the intergovernmental fiscal transfer system in Germany appear to heavily concentrate on the issues surrounding the measurement of local expenditure needs of a municipality and their coverage through the down-flow grants when the...

The division of tax room for shared tax bases, such as income taxes in Canada, the United States, Australia and Switzerland, is a frequent cause of political conflict between national and sub-national governments. Economists and legal scholars have developed a theory that sets out an optimal...

This paper discusses the application of the conceptual framework for potential revenue estimation using Indonesia's existing macroeconomic indicators. The authors find that Gross Regional Domestic Product (GRDP), population, and urbanization rate are good predictors for most tax sources. These...