In the paper, the budgetary relationships between the center and the region are studied in the aspect of income distribution; the analyzes of the shortcomings are implemented being characterized for revenue distribution and preventing socio-economic equalization of territorial units and their...

State budgets in the United States played a significant macroeconomic role in the 1970s and 1980s, and the level of cyclical responsiveness was affected by the severity of statutory and constitutional fiscal restraints. Moving from no fiscal restraints to the most stringent restraints lowered...

We study how local governments’ debt financing decisions relate to the term structure of interest rates. Using a community welfare maximization framework, we derive the link between interest rates and the adjustable-rate share of borrowing by local governments. We construct a novel database of...

We study how local governments’ debt financing decisions relate to the term structure of interest rates. Using a novel database of loans taken out by local governments in England, we find that the yield spread is the main determinant of the local governments’ adjustable-rate loan share. Our...

We investigate the effect of fiscal institutions such as the strength of the finance minister in the budget process and deficits on interest spreads contained in bond yields of the countries now belonging to the Eurozone. Deficits significantly increase risk premia measured by relative swap...

In 2008, governments in many countries embarked on large fiscal expenditure programmes, with the intention to support the economy and prevent a more serious recession. In this study, the overall impact of a substantial increase in fiscal expenditure is considered by providing a novel analysis of...

Dewatripont and Tirole (2024) defend the morality of markets on the ground of an irrelevance result: the social production of moral actions is independent from competitive pressure on markets. No matter how strong competitive pressure is, markets perform well in diffusing signals about moral...