We examine the design of fiscal equalization transfers aimed at inter-regional redistribution in a setting in which special interest groups distort the fiscal policies of local governments. Equity always calls for tax-base equalization while efficiency calls for tax-base equalization of fiscal...

This Report has been prepared for the European Commission, DG TAXUD under contract TAXUD/2017/DE/329, "Study and Reports on the VAT Gap in the EU-28 Member States" and serves as a follow-up to the six reports published between 2013 and 2018. This Study contains new estimates of the Value Added...