Fiscal decentralization is on the rise worldwide while barriers to factor and population mobility are declining. Greater decentralized government activity is therefore taking place in an economic environment characterized by increased competition for mobile resources, and government policy...

This paper introduces a computable general equilibrium model of intergovernmental relations in which heterogeneous agents (i) are endowed with income and houses, (ii) are fully mobile between multiple jurisdictions, and (iii) vote in both local and state elections to determine local property and...