In this paper, commuting is introduced to a federal economy where benevolent lower-level (state) governments levy an ad valorem tax on labour income. This results in inefficiently low levels of taxation, even when households as a whole do not migrate. Indeed, rather than attracting more workers...

Scotland is engaged in a lively and on-going debate on greater fiscal autonomy and independence, which is politically controversial, especially in respect of tax-varying powers. The Scottish Parliament has the power to make a balanced-budget adjustment in public expenditure by varying the basic...

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...

It is well known that wages in large cities are higher than elsewhere. There is only little empirical evidence on the mechanisms behind this phenomena. One channel, that is discussed in the literature, is learning. Provided that individuals learn by interacting with one another, an urban wage...

The Austrian Beveridge curve shifted in 2014, leading to ongoing academic discussions about the reasons behind this shift. While some have argued that the shift was caused by a supply shock due to labour market liberalization, others have stated that matching efficiency decreased. Using a new...

The paper considers the influence of federal government expenditures and transfers on interregional convergence in gross regional product (GRP) per capita and wages in Russia over 2005-2011. Such an influence is not found. The federal government's policy was reactive and was not focused on...

Spending on productive infrastructure is seen as an important contributor to long term economic growth. Several authors have documented a downward trend in public investment during the last three decades and warned about its possible detrimental effects on the economy. A not well-realized fact...

The main tax income for the sub-national governments in Estonia is personal income tax (PIT), which is shared between central and local governments. Since 2004, the share of that tax which is allocated to local governments has been steadily growing. Also, various grants from the central budget...