Showing 1 - 10 of 1,191,795
This paper uses a simple model of fiscal competition between local jurisdictions to analyse the impact of intergovernmental grants on the composition of public spending. We find that a higher degree of redistribution within a system of ʺfiscal equalisationʺ coincides with a smaller overall...
Persistent link: https://www.econbiz.de/10003412064
understanding the empirical estimation of soft budget constraints …
Persistent link: https://www.econbiz.de/10014101652
Several recent studies suggest that equalizing transfers in a federal system may distort the tax policy decisions of states. We study this issue for the German federal fiscal system. In a simple theoretical model, we first identify a substitution and an income effect of equalizing transfers. Our...
Persistent link: https://www.econbiz.de/10013321121
this pattern and tests them in a natural experiment from Germany. The first hypothesis is that fiscal redistribution …
Persistent link: https://www.econbiz.de/10011929809
actually favors stabilization. In an empirical analysis for Germany, the paper adds support for the finding of significant … regional stabilization by fiscal flows. The results indicate that about 17 % of GDP variation across West Germany's states has … been removed by fiscal flows during the last two decades. Thus, in Germany where the fiscal federalism is criticised for …
Persistent link: https://www.econbiz.de/10011442662
Cooperative fiscal federalism needs a multi-level consent to decide on the allocation of intergovernmental transfers. We study how parliamentary representation of municipalities on the federal level influences the allocation of federal transfers to municipal governments under this type of...
Persistent link: https://www.econbiz.de/10012291881
Cooperative fiscal federalism needs a multi-level consent to decide on the allocation of intergovernmental transfers. We study how parliamentary representation of municipalities on the federal level influences the allocation of federal transfers to municipal governments under this type of...
Persistent link: https://www.econbiz.de/10013399870
We test the hypothesis that the flypaper effect can arise if the recipient government finances part of its expenditures with a distortionary tax. We present a simple theoretical framework that shows how a lump-sum transfer stimulates the marginal expenditures of a recipient government through an...
Persistent link: https://www.econbiz.de/10009571280
We study the strategic incentives of regional governments to allocate their budget to public investment and to public …-transfer system by the central government. The strategic incentives can dier between rich and poor regions depending on the nature of … the investment. Rich and poor regions both have strategic incentives to reduce investment which increases the productivity …
Persistent link: https://www.econbiz.de/10010429124
An unfunded expenditure mandate occurs when a local government must provide a good or service by dictate of a higher level of government that does not supply an accompanying revenue source to fully finance the expenditure. This paper is the first to provide empirical evidence on the influence of...
Persistent link: https://www.econbiz.de/10012979186