The "Decentralization Theorem" (Oates, 1972) is central to the discussion of fiscal federalism. We revisit the role of …

The “Decentralization Theorem” (Oates, 1972) is central to the discussion of fiscal federalism. We revisit the role of …

The Decentralization Theorem (Oates, 1972) is central to the discussion of fiscal federalism. We revisit the role of …

governments and, thereby, enable a more precise characterization of local government behaviour in fiscal federalism. …

competitive federalism models such as that of the United States. The basic characteristics of the two European federations are …

a negative fiscal externality on each regional planner. We show that the equalization transfer presents a wider range of …The paper’s aim is to link two different issues: equalization and fiscal competition. In the model there are two … must decide on the introduction of an equalization transfer based on fiscal capacity. Regions choose tax rates on a …

offset when equalization holds: tax competition in the two tax regimes become closer. The shopping technology for gasoline … gives less scope for scale economies, so that equalization does not affect reaction functions. …