This paper deals with the problems encountered in defining and measuring the degree of fiscal decentralization. Drawing on a recent analytical framework of the OECD, different measures of fiscal autonomy and revenue decentralization are presented which consider tax-raising powers of sub-central...

This paper examines the factors determining vertical government structures. An empirical analysis for a panel of OECD countries indicates that apart from preferences, economies of scale, and other factors, institutions explain cross-national differences in the degree of fiscal decentralization....

Recent literature has emphasized that redistributive grant systems may tend to internalize fiscal externalities arising from tax competition. This paper further explores the conditions under which local grant systems enforced by the state government will enhance efficiency. A system of...

Infolge der Regionalisierung von Wirtschafts- und Strukturpolitik entstehen entweder vollkommen neue Institutionen (horizontale Regionalisierung) oder Institutionen mit neuen Kompetenzen (vertikale Regionalisierung). Der Erfolg einer Regionalisierungspolitik läßt sich am Grad der...

The paper extends the familiar standard tax competition model for the possibility of cross-border commuting by introducing an additional level of jurisdictions. For separating the impact of landownership and cross-border commuting different schemes of landownership are considered. It will be...

We consider the hold-up problem between a foreign direct investor and the government(s) in a host country with weak governmental structure and lack of power to commit. Using Nash threats, we show that an efficient investment level can be sustained for a sufficiently high discount factor and ask...

This paper uses the quasi-experiment of Germany's reunification to identify local tax mimicking by municipalities in Eastern-Germany. After reunification, East-German municipalities were allowed to independently set, for the first time in decades, local business and property tax rates. I explore...

Die Verhandlungen zwischen Bund und Ländern zur Neugestaltung des Finanzausgleichs in Deutschland sind festgefahren. Vor allem die Vorstellungen zur Zukunft des Umsatzsteuerausgleichs gehen diametral auseinander, hier scheint keine Einigung absehbar. Diese Debatte wurde vor drei Jahren in der...

From to beginning of year 2002, the Spanish Autonomous Communities (CC. AA.) fiscal performance is conditioned by a new legal framework compounded from the financial agreement and the legislation on budget stability. This new framework implies a change in the CC. AA. fiscal behaviour. Are the...