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The economic effects of federalism and decentralization : a cross-country assessment

Voigt, Stefan; Blume, Lorenz - 2009

component analysis, seven aspects of both federalism and decentralization are used as variables for explaining differences in (1 … study adds to our knowledge on the transmission mechanisms of federalism and decentralization. …

Persistent link: https://www.econbiz.de/10010271861

The incentive effect of fiscal equalization transfers on tax policy

Buettner, Thiess - 2005

A theoretical analysis considers the impact of a typical system of redistributive ?fiscal equalization? transfers on the taxing effort of local jurisdictions. More specifically, it shows that the marginal contribution rate, i.e. the rate at which an increase in the tax base reduces those...

Persistent link: https://www.econbiz.de/10010261140

Tradable emission permits in a federal system

Verbon, Harrie A. A.; Withagen, Cees A. - 2005

A system of tradable permits in the standard setting is effective in attaining the policy objective with regard to pollution reduction at the least cost. This outcome is challenged in case of a tradable permit system in a federal state with individual states having discretionary power regarding...

Persistent link: https://www.econbiz.de/10010261286

Sharing budgetary austerity under free mobility and asymmetric information : an optimal regulation approach to fiscal federalism

Breuille, Marie-Laure; Gary-Bobo, Robert J. - 2005

In the present article, Tiebout meets Laffont and Tirole in the land of Fiscal Federalism. We use a non-trivial Principal-Multi-Agent model to characterize the optimal intergovernmental grant schedule, when the cost of local public goods depends on hidden characteristics and actions of local...

Persistent link: https://www.econbiz.de/10010261345

New evidence on fiscal decentralization and the size of government

Fiva, Jon H. - 2005

This paper adds to the literature by utilizing improved data on tax revenue decentralization to re-examine the … relationship between fiscal decentralization and the size of government. An econometric analysis using panel data from 18 OECD … countries shows that fiscal decentralization matters for both the size and composition of government spending. Tax revenue …

Persistent link: https://www.econbiz.de/10010261382

Efficient revenue sharing and upper level governments : theory and application to Germany

Büttner, Thiess; Hauptmeier, Sebastian; Schwager, Robert - 2006

Recent literature has emphasized that redistributive grant systems may tend to internalize fiscal externalities arising from tax competition. This paper further explores the conditions under which local grant systems enforced by the state government will enhance efficiency. A system of...

Persistent link: https://www.econbiz.de/10010261409

Demographic change and public sector budgets in a federal system

Hofmann, Michael; Kempkes, Gerhard; Seitz, Helmut - 2008

This paper examines the effects of demographic change on public finances in a federal system. We develop a simple methodical procedure to measure the effect of demographic changes on public revenues and expenditures. We apply our method to the local, state and federal government sector as well...

Persistent link: https://www.econbiz.de/10010264374

Minimum standards, fixed costs and taxing autonomy of subnational governments

Seitz, Helmut - 2008

The paper examines the question how fiscally strong and fiscally weak states respond to taxing autonomy at the state level, a subject that is currently under debate in Germany where states do have virtually no power to tax. We use a simple theoretical model that incorporates state surtaxes on...

Persistent link: https://www.econbiz.de/10010264393

Intergovernmental grants and bureaucratic power

Dahlberg, Matz; Lundqvist, Heléne; Mörk, Eva - 2008

In their role as agenda setters and implementers of political decisions, bureaucrats potentially have the power to influence decisions in their own favor. It is however difficult to empirically test whether bureaucrats actually are involved in such actions. In this paper we suggest and apply a...

Persistent link: https://www.econbiz.de/10010264462

Who do you blame in local finance? An analysis of municipal financing in Italy

Bordignon, Massimo; Piazza, Santino - 2010

A 1999 reform allowed Italian Mayors to partially substitute a more accountable source of tax revenue (the property tax) with a less transparent one (a surcharge on the personal income tax). Theoretical analysis suggests this should give incompetent Mayors a less costly way to hide themselves,...

Persistent link: https://www.econbiz.de/10010270475