There are many positive aspects associated with subnational borrowing, including additional funding and promoting intergenerational equity. However, it may also endanger fiscal sustainability and macro stability due to moral hazard and soft budget constraints, making borrowing controls justified...

We examine how amnesty-based regulatory initiatives affect compliance in the context of the SEC’s 2014 Municipalities Continuing Disclosure Cooperation initiative (MCDC). In an effort to increase transparency in the municipal debt market, the MCDC granted favorable settlement terms to...

Federal action addressing climate change is likely to emerge either through new legislation or via the U.S. EPA's authority under the Clean Air Act. The prospect of federal action raises important questions regarding the interconnections between federal efforts and state-level climate policy...

We study the competition of two suburbs that are facing transit traffic flows. We show that in the absence of toll measures, the Nash equilibrium leads to a race to the top in traffic calming, except for the measures that do not affect the generalized cost of traffic. The Nash equilibrium is...

Power sector subsidies constituted 83 percent of the federal government’s total subsidies of PRs 558 billion in 2012; the tariff differential subsidy (TDS) amounted to PRs 457 billion. TDS is provided to distribution companies (DISCOs) to cover the difference between the NEPRA-approved tariff...

The parsimony of economic theory provides general insights into an otherwise complex world. However, the most straightforward organizing principles from theory have not often taken hold in environmental policy or in the decentralized climate policy regime that is unfolding. One reason is...

This article starts by surveying the literature on economic federalism and relating it to network industries. Some new developments (which focus on the role of inter-jurisdictional externalities and multiple objectives) are then added and used to analyze regulatory arrangements in...

We analyse the impact of regulation, industrial policy and jurisdictional allocation on broadband deployment using a theoretical model and an empirical estimation. Although central powers may be more focused and internalize interjurisdictional externalities, decentralized powers may internalize...

Federal action addressing climate change is likely to emerge either through new legislation or via the U.S. EPA’s authority under the Clean Air Act. The prospect of federal action raises important questions regarding the interconnections between federal efforts and state-level climate policy...

We analyse the impact of regulation, industrial policy and jurisdictional allocation on broadband deployment using a theoretical model and an empirical estimation. Although central powers may be more focused and internalize inter-jurisdictional externalities, decentralized powers may internalize...