We explore the efficiency of alternate allocations of responsibility for greenhouse gas emissions pricing policies in a small open economy federation. Emissions result from consumption and production of a tradeable dirty good, and their intensity depends on the emissions technology. National...

Fiscal federalism concerns the division of policy responsibilities among different levels of government. Many current economic and policy developments, such as globalization, environmental crises and rising inequality, may not appear to be favorable to fiscal federalism, yet countries are...

We study the effects of decentralized wealth taxation on mobility and the effectiveness of tax coordination at mitigating tax competition. We exploit the reintroduction of the Spanish wealth tax, after which all regions except Madrid levied positive tax rates. We find the mobility responses to...

Public investment spending declined steadily in advanced economies during the last three decades. Germany is a case in point where the aggregate decline coincided with growing inequality in investments across districts. What explains the variation in local investment spending? We assembled a...

We develop an endogenous growth model with public consumption and infrastructure services provided by two-tier governments. Growth performance and welfare implication are compared under the centralized and decentralized fiscal federal systems. In general, there is a trade-off between welfare and...

This study's purpose is to assess fiscal federalism's effect on public service provision in Ethiopia. The study adopted an explanatory research design. Considering 10 Sub-National Governments (SNGs) from 2005 to 2018, it employed Partial Least Square Structural Model (PLS-SEM). It also utilized...

This paper assesses the effectiveness and public finance implications of the German debt brake, a constitutional balanced budget rule introduced in 2009 that aims to ensure a sustainable path of public indebtedness. In order to estimate its causal effects, our paper employs a synthetic control...

This paper addresses the conceptual gap between the expected benefits of federalism in managing ethnicity-based conflict and its actual governance outcomes in the African context. One of the main reasons for this gap is the conflation of federalism with decentralization. In response, we develop...

What instruments can governments deploy to prevent fiscal crises in decentralized fiscal systems? This analysis reveals that good public sector institutions, controls by the central government over local fiscal balances and borrowing, and intergovernmental transfers could be effective...

Peru's mining wealth holds the promise to substantially accelerate potential growth. However, many mining projects have been stalled for several years due to conflicts with local communities that feel excluded from the benefits. Although local governments receive nearly 2 percent of GDP in...

The study examined the effect of fiscal decentralization on healthcare availability outcomes from 23 Kenyan counties during the 2013-2022 devolution period. The results from different robust non-endogeneity econometric methods indicate a significant deleterious effect of fiscal decentralization...

This paper examines the fiscal and extra-fiscal effects of decentralizing the collection of Brazil's rural land tax from the federal level to local governments. Using a difference-in-differences research design, we assess the impact of local tax enforcement on revenue, land use, and...

This paper investigates the causal effects of central-to-local government transfers on local economic activity in Ecuador, utilizing exogenous variation from a reform in the intergovernmental transfer formula implemented in 2018. Addressing gaps in the fiscal decentralization literature, this...

Federated Learning (FL) presents a promising approach to machine learning (ML) by allowing multiple sources of data (devices or entities) to collaboratively train a shared model while keeping data decentralised. This approach mitigates privacy risks as raw data remains locally on the sources,...

Although reassignment of policy instruments among governments in many federations is a recurring event, there is no widely accepted, positive model of the phenomenon. This stands in contrast to the well established body of work on the normative theory of the efficient federal assignment. In this...

We explore the efficiency of alternate allocations of responsibility for greenhouse gas emissions pricing policies in a small open economy federation. Emissions result from consumption and production of a tradeable dirty good, and their intensity depends on the emissions technology. National...

Against the backdrop of China's "dual-carbon" goals, the complex interplay between fiscal decentralization and green taxation presents significant challenges for climate governance. This study examines the impact of green taxation on carbon emissions within the context of fiscal...