Aldasoro, Iñaki; Seiferling, Mike - 2014 - First draft: September 2013, This draft: July 2014
, creating "vertical fiscal imbalances". These imbalances measure the extent to which sub-national governments' expenditures are … to examine the effects of vertical fiscal imbalances on fiscal performance through the accumulation of government debt …. Our findings suggest that vertical fiscal imbalances are indeed relevant in explaining government debt accumulation, and …