The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) dealt a fiscal blow to state governments by repealing the state death tax credit, a mechanism by which the Federal government effectively shared estate tax revenues with the states. Between 2001 and 2005, the repeal gradually...

This paper investigates the impact of inequality in the geographic distribution of fiscal resources on regional economic growth under fiscal decentralization policy in the context of China’s experience, using panel data for 28 provinces over the period 1987–2010. In the recent past, the...

Recent literature suggests that administrative fragmentation can be politically motived. This paper contributes to the literature by investigating the determinants of administrative fragmentation at the subnational level of a unitary country- Bangladesh. The study conducts a panel data analysis...

The paper reconsiders the theory of fiscal federalism in a framework inspired by property-rights theory. We set up a two-period model where on a first stage a region in a federation can expend value-enhancing investments into a public project. The project can be implemented on a second stage,...

The paper stresses the financial aspects of building and organizing, in Italy, a Metropolitan City, typically represented by Milan. It starts by recalling the theoretical insights dealt with in a contribution written over thirty years ago by Giancarlo Mazzocchi, when the implementation of the...

We develop a model with two provinces, producing two goods: one mobile and the other not. The mobile good is taxed according to the destination principle by the local government; it is also federally taxed. People decide to buy the good at the most advantageous price. Namely they can buy...

The aim of this paper is to analyze whether Spanish municipalities adjust in response to budget shocks and (if so) which elements of the budget they are more likely to adjust. The methodology we use to answer these questions is a vector error-correction model (VECM), estimated with data from a...

[ENG] This paper examines the structural characteristics of Unione di Comuni, a kind of local councils partnership recently supported by Italian law, trying to assess which factors most influenced the choice of functions and services to being managed associatively. It also analyzes the impact of...

We analyse, with a simple stylized model, the impact of the change of parameters of Need equalization formula for intergovernmental grants on productive efficiency of a local government providing a public service. In our context, this kind of efficiency means producing, at minimum costs and at...