The literature on horizontal tax interdependencies offered limited attention to the interactions on administrative policies although they play an important role in determining the total tax revenues collected. The incentive for sub-central tax authorities to share relevant taxpayer-specific...

We examine the design of fiscal equalization transfers aimed at inter-regional redistribution in a setting in which special interest groups distort the fiscal policies of local governments. Equity always calls for tax-base equalization while efficiency calls for tax-base equalization of fiscal...