We propose a theory of tax centralization and inter governmental grants in politico-economic equilibrium. The cost of taxation differs across levels of government because voters internalize general equilibrium effects at the central but not at the local level. This renders the degree of tax...

We propose a theory of tax centralization and inter governmental grants in politico-economic equilibrium. The cost of taxation differs across levels of government because voters internalize general equilibrium effects at the central but not at the local level. This renders the degree of tax...

Nicht zuletzt aufgrund der kürzlich in der Schweiz abgelehnten Vollgeldinitiative wird das Thema Geldschöpfung privater Geschäftsbanken auch außerhalb der Fachwelt in einer breiteren Öffentlichkeit diskutiert. Welche Chancen böte der Systemwechsel zu einem Vollgeldsystem? Und mit welchen...

When does a swap between private and public money leave the equilibrium allocation and price system unchanged? To answer this question, the paper sets up a generic model of money and liquidity which identifies sources of seignorage rents and liquidity bubbles. We derive sufficient conditions for...