We study the fiscal policy reactions of municipalities in the German state of North Rhine-Westphalia to an unanticipated spending shock. The implementation of a horizontal transfer system led to additional contributions for selected municipalities. Using the quasi-random assignment, we examine...

State building and state competition during the 16th century triggered a creative moment in the history of public finance. Recent scholarship has clearly identified the Papal States and their communities as active participants both in the state building process and the reorganization of public...