This article examines how revenue structures, through fiscal illusion effects, influence government spending. It does so with a regression model in which public spending depends on the perceived price of public services and other demand variables. The authors construct a perceived price term...

This study develops local and global indices to measure interregional redistribution. The local indices compare federal revenues and expenditures assigned to various regions with the pattern of income disparities among regions. They are developed by relating these comparisons under a given...