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The famous 1968 Witsenhausen counterexample demonstrated that for a multi-agent linear quadratic Gaussian (LQG), the optimal linear solution is, in general sub-optimal. The counterexample was a chosen distributed control system (and hence a system with a non-classical information pattern) that...
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This paper studies the equilibrium effects of local fiscal autonomy accounting for benefits from self-determination. It proposes a quantifiable structural equilibrium framework in which imperfectly mobile heterogeneous households sort themselves across jurisdictions under endogenous public good...
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Fiscal decentralization is on the rise worldwide while barriers to factor and population mobility are declining … this combination of decentralization and mobility may have on political and economic outcomes. As these trends have become … models and data has taken on particular importance. Complex general equilibrium models of fiscal decentralization ultimately …
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equity aspects fiscal decentralization, fiscal competition, fiscal externalities, and intergovernmental grants. The survey … integrates both theory and empirics, while also focusing on the variety of federal systems in different countries, both …
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