This paper provides evidence of the role of spillovers in the efficiency of French municipalities. These spillovers are apprehended through four levels of municipal equipment and we investigate municipal efficiency changes both for cities including a certain amount of equipment and for cities...

This paper proposes a system of tradable deficit permits for implementing budgetary austerity at the local level. We evaluate the efficiency of the fiscal retrenchment allocation in a dynamic setting with a commitment problem. The way rights are allcated and traded on the market turns out to be...