The distinct characteristic in James Buchanan's thinking about federalism in contrast to the traditional theory of fiscal federalism is his view about fiscal competition. In this paper, it is demonstrated that this thinking went through three stages. From the 1950s to the beginning of the 1970s,...

The distinct characteristic in James Buchanan’s thinking about federalism in contrast to the traditional theory of fiscal federalism is his view about fiscal competition. In this paper, it is demonstrated that this thinking went through three stages. From the 1950s to the beginning of the...

I study how the political decision process affects urban traffic congestion policy. First, I look at the case of a single government deciding, through majority voting, on a monetary charge to be paid to drive to a city's Central Business District (CBD): if the majority of individuals prefers to...

Contribution to a series of recollections and reflections on professional experiences of distinguished economists. Article originally published in vol. 39 n. 159 of Banca Nazionale del Lavoro Quarterly Review.

Contribution to a series of recollections and reflections on professional experiences of distinguished economists. Article originally published in vol. 39 n. 159 of Banca Nazionale del Lavoro Quarterly Review.

This theoretical paper shows how a central government can induce a policy concerning a municipal matter through a package of a policy requirement and a grant. We find that, due to fiscal competition and the possibility for citizens to move between municipalities, the central government can make...

The theoretical literature on the economics of fiscal federalism has identified several potential effects of government decentralization on economic growth. Much of the traditional literature focuses on the efficiency aspects of a decentralized provision of public services. However,...

This paper provides a model of nonlinear income taxation in a context of international mobility. We consider two identical countries, in which each government chooses non-cooperatively redistributive taxes. It is shown that when skilled workers can move at low cost, the income taxation does not...

The purpose of this paper is to use a game theoretical approach to analyze tax harmonization, or competition, in a monetary union, more specifically in Europe. Without harmonization, free-riding behaviors may appear, leading to a sub-optimal tax equilibrium. Tax competition may also create...

This paper provides a model of nonlinear income taxation in a context of international mobility. We consider two identical countries, in which each government chooses non-cooperatively redistributive taxes. It is shown that when skilled workers can move at low cost, the income taxation does not...