Intergovernmental fiscal relations in Japan have been strained in recent years. This paper seeks to assess the Japanese equalization transfer in the light of the theory of fiscal federalism. This paper argues that the case for equalization lies in offsetting net fiscal benefit (NFB)...

This paper clarifies the treatment of congestion costs in models with migration and impure public goods. In particular, it is shown that the proposition that the form of the locational efficiency condition is independent of the level of public good provision depends critically on the measure of...