It is under debate if the organization of the German Federal State, with itsfeatures and its peculiarities, has been adequate or not to reduce or possibly toequalize territorial differences.This research paper proves that the reduction of economic differences inGermany has been strictly...

Theoretical analysis, in general, agrees with Prud'homme's statement (1995), that one of the "costs" of federalism is the concentration of resources in a limited number of territories and the expansion of fiscal disparities among sub-national governments. The economic model of solidarity...