The transfer of sovereign states in a common market is effected by the policy choices of all memeber states. The free mobility of goods and factors of production creates the policy externalities. The European Union, for example, is working towards comletely free movement of citiens between...

The paper studies the effects and the determinants of interregional redistribution in a federation of jurisdictions among which households are mobile. Each jurisdiction controls a local redistributive policy that is democratically chosen by its residents. Paradoxical consequences of...

The Paper studies the effects and the determinants of interregional redistribution in a model of residential and political choice. We find that paradoxical consequences of interjurisdictional transfers can arise if people are mobile: while self-sufficient regions are necessarily identical with...

Do intergovernmental transfers reduce revenues collected by local government authorities (LGAs)? There is already a well-established body of literature in public finance, which argues that intergovernmental grants 'crowd out' local revenues. Most existing studies, however, explore the fiscal...

It is a standard prediction in the literature on tax competition that mobility of factors between jurisdictions causes local governments to choose too low tax rates and to underprovide public goods. This paper shows circumstances when the prediction may be false. The prediction may be false when...

This paper argues that the underprovision of public goods can be partly explained by lower demand from Indigenous groups with high preferences for Indigenous identity and a high capacity for coordination. Examining the post-Mexican Revolution period (1920s-1950s), when the state used the first...

Do intergovernmental transfers reduce revenues collected by local government authorities (LGAs)? There is already a well-established body of literature in public finance, which argues that intergovernmental grants 'crowd out' local revenues. Most existing studies, however, explore the fiscal...