We connect the theories of strategic debt and tax competition in a model and explore whether capital mobility coupled with a strategic debt effectively tames Leviathan. Our proposition is that in the case of a small open economy international tax competi-tion for mobile capital opens the way to...

The analysis presented in this paper deals with two main issues: the one of debt sustainability, meant in the particular acceptation proposed in this article, and the one of the effects of debt decumulation for the various territorial communities, in particular for the weak areas of Italy...

The term “federalism” does not have a clear meaning: it must be specifically defined in the context in which it will be applied it. Regarding the Italian case, this definition can be found in the Fiscal Federalism Delegation Act (FFDA), Law of 5th May 2009, No. 42 (FFDA), which specifies the...

The Italian public sector is characterized by a moderate expenditure decentralization,associated with an highly centralized fiscal system. As a consequence, the State expendituresplay a fundamental role in determining the disposable resources at local level, interms of direct provision of public...

Governments do not have perfect information regarding the priorities and the needs of different groups in the economy. This lack of knowledge opens the door for different groups to lobby the government in order to receive the government’s support. We set up a model of hierarchical contests and...