HOW MUCH EUROPE? SUBSIDIARITY, CENTRALIZATION and FISCAL COMPETITION

Institutional competition versus centralization : Quo vadis Europe ?

How Much Competition is a Secondary Market?

Do active secondary markets aid or harm durable goods manufacturers? We build a dynamic equilibrium model of durable goods oligopoly, with consumers who incur lumpy costs when transacting in the secondary market, and calibrate it to U.S. automobile industry data. By varying transaction costs, we obtain a direct measure of the competitive pressure that secondary markets create on durable goods m...

Public Budget Composition, Fiscal (De)Centralization and Welfare

We present a dynamic two-region model with overlapping generations. There are two types of productive public expenditure, education and infrastructure funding, and governments decide optimally on budget size (tax rate) and its allocation across the two outlays. Productivity of government infrastructure spending can differ across regions. This assumption follows well established empirical eviden...

Fiscal Centralization of Indiana State and Local Government

Brain Drain and Fiscal Competition. A theoretical model for the Europe

In this paper we study Brain Drain (BD) and Fiscal Competition (FC) in a unified framework for the European Union (EU) specific context. Potential mobility of educated workers can increase the degree of FC through taxation or the provision of public education. An increase in FC can be caused by competition among different jurisdictions that aim to attract educated workers. When the importance o...