In theory, federal transfers that make household location decisions efficient should ignore local cost differences …, subsidize positive externalities, and offset differences in federal-tax payments and local taxes levied on non-residents, but … equalization policy appears neither efficient nor equitable, but exacerbates pre-existing inefficiencies and underfunds minorities …

redistribution in a federation with free mobility. We are interested in intra-regional inequality when redistribution policies are … organized decentrally in a federation. Due to free mobility, this topic cannot be analysed independently of normative issues of …-cooperatively. Under autarky, CL utilitarians implement an egalitarian solution. With free mobility, some degree of intra …

arise even when the vertical as well as horizontal externalities are positive in isolation, and one would rather expect …

The Decentralization Theorem (Oates, 1972) is central to the discussion of fiscal federalism. We revisit the role of …