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Should a subset of member states of a federation be allowed to form a sub-union on some policy issue? When centralization is not politically feasible, allowing an enhanced cooperation agreement among a subset of countries permits the latter to gain benefits which would otherwise be lost....
Persistent link: https://www.econbiz.de/10011508107
governments and, thereby, enable a more precise characterization of local government behaviour in fiscal federalism …
Persistent link: https://www.econbiz.de/10012770444
Federal fiscal arrangements are argued to give rise to tacit collusion among competing Leviathans (Brennan and Buchanan, The Power to Tax, CUP, 1980). Though frequently encountered in academic and policy discussions, the cartelization hypothesis has rarely been scrutinized formally. This paper...
Persistent link: https://www.econbiz.de/10013319298
This paper examines capital tax competition in the presence of an interstate transfer policy without federal commitment. Lack of commitment implies that tax policy is chosen prior to federal transfers. The paper's main result is that ex-post federal policy internalizes horizontal fiscal...
Persistent link: https://www.econbiz.de/10013319919
Persistent link: https://www.econbiz.de/10008691949
In Western economies, the concrete design of fiscal federalism is determined by the status the federation grants to … efficiency gains offered by fiscal federalism, the vertical co-ordination of revenue and expenditure responsibilities between the …
Persistent link: https://www.econbiz.de/10011433689
institutions of fiscal federalism system, borrowing mechanisms for the states, and governance are then discussed, with an emphasis …
Persistent link: https://www.econbiz.de/10005619591
Education is one of the most important services provided by public governments in almost every country worldwide. However, the most important cross-country observations about education ? like the PISA report by the OECD or the TIMSS by the IEA ? focus only on international benchmarks to compare...
Persistent link: https://www.econbiz.de/10005627652
Measurement of both federalism and decentralization has been contentious. We introduce three new indicators reflecting … important aspects of both federalism and decentralization. The three new indicators are the result of principal component … evidence that it is important to distinguish between federalism and decentralization, if one is interested in ascertaining …
Persistent link: https://www.econbiz.de/10011668291
This paper analyzes how subnational governments allocate own resources between current spending and infrastructure investment and decide on borrowing under the expectation of federal bailouts. It is assumed that states' borrowing possibilities increase with the expectation of such bailouts...
Persistent link: https://www.econbiz.de/10013120740