This paper analyzes the problem faced by an imperfectly informed supra-national governmental authority (SNGA) with restricted funds that wishes to design an International Environmental Agreement (IEA) for developing countries (DCs). The SNGA contracts with polluting firms through their...

Note: The following is a description of the paper and not the actual abstract as it appeared in the print journal. I study the pollution control problem faced by an imperfectly informed supra-national governmental authority (SNGA) that wants to design an international environmental agreement...

Multinational enterprises form long value chains linking subsidiaries and affiliates in many countries. Some governments provide tax preferences which may distort the rightful profit distribution over the value chains. This profit shifting is elusive for the involved countries because no...

This paper focuses on the centralization program implemented in Israel in 2004 to analyze whether the administrative subordination of municipalities is an effective policy to deal with problems related to soft-budget constraint of lower level governments. The results consistently show, for...

Recent theoretical research suggests that financing sub-national governments’ expenditure out of own revenue sources is linked to more responsible budgeting, because the financial implications of spending decisions then are internalized within a jurisdiction. We test this proposition...

There is a growing recognition that fundamental changes are happening in Indian fiscal federalism ex post the abolition of the Planning Commission, the creation of the National Institution for Transforming India (NITI) Aayog, the constitutional amendment to introduce the Goods and Services Tax...

After the financial and economic crisis in Europe, a broad consensus has emerged that a stronger fiscal dimension may be needed to complete the architecture of Economic and Monetary Union (EMU). This paper analyses the performance of interregional transfers in existing fiscal-federal systems,...

Empirical evidence from the U.S. and the European Union suggests that regions which contribute to interregional redistribution face weaker borrowing constraints than regions which benefit from interregional redistribution. This paper presents an argument in favor of such differentiated budgetary...

We study the effectiveness of local borrowing regulations in maintaining fiscal sustainability and the effect of supervision over municipal budgeting on local debt using a panel on municipalities in Germany's most populous state of North Rhine-Westphalia from 2003 to 2011. The identification...