This paper investigates whether the rare occurrence of a local election ending in a tie or being decided by a single vote generates informational spill-overs on nearby localities’ subsequent elections. First, based on the pivotal-voter theory, we develop a model of costly instrumental voting...

This paper exploits the multi-tiered structure of personal income taxation in Italy to investigate within-tier (horizontal) and between-tiers (vertical and diagonal) fiscal externalities. Estimation of an unrestricted income tax reaction function on municipalities located at internal regional...