How do municipal finances interact with local labor market shocks? I show that the observed general equilibrium response to local labor market shocks contains an economically important amplification effect through local financial constraints. At the center of the local financial amplification...

The deteriorating fiscal position of municipalities across the United States raises the question which adjustment mechanisms municipalities have at their disposal and what their effects are. We utilize quasi-experimental variation in the year of property tax assessments in the state of...

We construct a novel data set on the fiscal position of municipalities in the United States and document a secular decline in their financial health. Our data combines financial data from the Annual Comprehensive Financial Reports (ACFRs) of municipalities along with Census data of their revenue...

This paper is devoted to the analysis of the formation the taxable profit, in particular, sources of profit and financial resources. It is shown that in the current conditions, in the composition of both profits and financial resources formed in the order of redistribution, an increasing role...

Georgian Abstract: საკვლევად აღებული საკითხი მეტად აქტუალურია, განსაკუთრებით კი განვითარებად ქვეყნებში. ნაშრომის...

In the literature, tax interaction is mainly due to tax and yardstick competition. However, we suppose that tax interaction appears when the local policy maker conforms his fiscal policy to decisions taken by his neighbourhood to fill information gaps. Theoretical results show that incomplete...

Public administration reform as a response to the requirements of socio-economic environment change, is a process that develops both at central and local level, aiming to an institutional framework achievement, suitable for administrative and financial decentralization, under the European Union...

Consider a principal-agent relationship in which more effort by the agent raises the likelihood of success. This paper provides conditions such that no success bonus induces the agent to exert more effort and the optimal contract is independent of success. Moreover, success bonuses may even...

Do parties matter? Yes, but not in the usual way we tend to think of them: big government Democrats and small government Republicans. Our first regression discontinuity design shows that whether the majority in the House of Representatives is Republican or Democratic does not affect the tax...

Should the Federal government and the remaining American states adopt the line item veto? What are its effects? We use regression discontinuity design to claim that in states with the line item veto, divided government has a causal negative effect on the tax level. By investigating a panel of 38...