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...

In passing the 1974 Budget Act, Congress fundamentally reshaped the federal budgeting and appropriations process for generations to come, but along with this change came several related, unintended consequences that continue to have an impact today. The Act asserted Congressional power and...