Neyapti, Bilin; Bulut-Cevik, Zeynep Burcu - İktisat Bölümü, İktisadi ve İdari Bilimler Fakültesi - 2011
This paper analyzes the welfare implications of a transfer mechanism in a fiscally decentralized economy where local governments select their tax collection effort to maximize their lifetime utility. We consider a transfer rule that both punishes for the lack of efficiency in tax-collection and...