Work

Fiscal federalism with a single instrument to finance Government

Year: 2005

Type: preprint

Abstract: The structure of each level of government in the United States has changed over the last 200 years. Wallis (2000) has presented empirical evidence that relates the dominance of each level not to the functions government decides to undertake (the expenditures it commits to), but to the costs and benefits of the financial instruments each level has available (the way each level extracts revenues). In this paper we provide theoretical evidence for this hypothesis. We show why two different levels of government (e.g. state and federal) would not want to use a common instrument to finance the same good.

Source: RePEc: Research Papers in Economics

Author: Carlos Maravall Rodríguez

Institution: Universidad Carlos III de Madrid

Language: English

Topic: Local Government Finance and Decentralization

Subfield: Political Science and International Relations

Field: Social Sciences

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: green

OpenAlex ID: W1505909445

Cites: 5

Cited by:

Related to: 10