This study deals with an analysis of allocation of government authority between local and central governments. Using a relatively simple model, we examine three classes of issues: First, what type of public project is implemented under a (de)centralized system? Second, is the size of governments...

Concentrating on the property of information infrastructure, this paper examines the impact of publicly funded technology development on the spatial allocation of population and social welfare. Information and communication technologies attract much attention as elements of change in regional...

This paper analyzes the endogenous choice problem of subsidy instruments as production expansion (export-promotion) policies. We consider a two-region economy in which firms produce a homogeneous good and sell it in a third region. The government in each region provides a production subsidy to...

This paper analyzes how a fiscal transfer scheme affects tax cooperation in a repeated-interaction model of tax competition. In particular, the paper studies whether a fiscal transfer scheme promotes or blocks voluntary tax cooperation. It is shown that the larger the scale of fiscal transfer...

This article describes a quantitative analysis of Japanese equalisation transfers based on the fiscal externality models of Hartwick, Boadway and Flatters. In particular, it examines whether the actual level of equalisation transfers matches the theoretically optimal level from the efficiency...

Within the framework of spatial tax competition with cross-border shopping, we examine the choice of tax method between ad valorem tax and unit (specific) tax. This study shows that governments endogenously choose the ad valorem tax method not because of a classic welfare reason, but because it...

In this paper, we examine the effect on city size of household preference for product variety. There are many theoretical analyses that have attempted to clarify the determinants of city size in the urban literature. Comparative static analyses are used to find out what happens to the...

This paper extends the work of Kempf and Rota-Graziosi (J. Pub. Econ. 94:768–776, <CitationRef CitationID="CR9">2010</CitationRef>), which argues that under capital tax competition the sub-game perfect equilibria (SPEs) correspond to two Stackelberg outcomes. The findings show that the Kempf and Rota-Graziosi result depends on the form...</citationref>

This article compares several rules of coordinated debt policies to show that the central government intervention is not required to carry out an efficient local debt policy. The main argument is that a form of <italic>partial</italic> coordination results in the efficient outcome rather than a <italic>full</italic> coordination...