This paper compares the impact of two equalization transfer schemes on regional budgetary choices: a gross equalization scheme, where ex-post transfers to regions are financed from federal tax revenues, and a net equalization scheme, where region-to-region ex-post transfers allocated by the...

Developed and developing countries compete to attract firms using various instruments including corporate taxes and environmental regulations. They also commit to international environmental agreements with “common but differentiated responsibilities” (CBDR). We investigate how the...