In the last 15 years, Italy has been involved in a complex, confuse and unfinished process of fiscal decentralization. In this context, data on fiscal flows are continuously produced and thrown in the political arena by several actors, political parties, interest groups and media alike, with...

This paper analytically derives the conditions under which the slope of the tax reaction function is negative in a classical tax competition model. If countries maximize welfare, we show that a negative slope (reflecting strategic substitutability) occurs under relatively mild conditions....

Which ways and means are available for the macroeconomic and fiscal coordination and/or integration within the EMU-framework? Which are the pros and cons of these scenarios? This paper combines economic theory, empirical analysis and insights regarding EMU’s institutional history in order to...

The international community is usually set against secessionist movements that threaten to break up existing states. At the same time, many fragmented countries receive development aid, which influences the political process there. The model presented here seeks to answer two questions: “Is...

The aim of this paper is to present the theoretical basis of public diplomacy and the characteristics of methods and areas of cross-border cooperation conducted by local governments in Podlaskie Voivodship. Report, in particular, draws attention to the civic and local government dimension of...

The number of municipalities in Japan has decreased from 3,232 in 1999 to 1,820 in 2006 because of municipal mergers, called Heisei-no-Daigappei. This paper estimates the political choices of local council members in Japan’s municipal mergers. In Japan, being a local council member is a...

The aim of this paper is to analyze the spillover effects of national and local tax policies in Argentina. To this aim, I develop a static bi-regional general equilibrium model for the Buenos Aires City (CABA) and the rest of Argentina. The BAC is relevant for the rest of the country because it...

Although decentralization is often modeled as an outcome of bargaining over rents and poli-cies, intuitively it seems possible that public statements, symbols and status often have a great impact on this process. The paper studies the relative importance of the “real” political actions...

Large-scale dams are controversial public infrastructure projects due to the unevenly distributed benefits and losses to local regions. The central government can make redistributive fiscal transfers to attenuate the impacts and reduce the inequality among local governments, but whether...

This paper explores whether collective insurance schemes of various kinds could improve the degree of cyclical income stabilisation and the operation of fiscal stabilisers in the European Economic and Monetary Union (EMU). We review the potential issues, the underlying trade-offs and the...