Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/26430 
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dc.contributor.authorKöthenbürger, Markoen
dc.date.accessioned2008-09-11-
dc.date.accessioned2009-07-28T08:31:46Z-
dc.date.available2009-07-28T08:31:46Z-
dc.date.issued2008-
dc.identifier.urihttp://hdl.handle.net/10419/26430-
dc.description.abstractPrevious literature widely assumes that taxes are optimized in local public finance while expenditures adjust residually. This paper endogenizes the choice of the optimization variable. In particular, it analyzes how federal policy toward local governments influences the way local governments decide on public policy. Unlike the presumption, the paper shows that local governments may choose to optimize over expenditures. The result most notably prevails when federal policy subsidizes local fiscal effort. The results offer a new perspective of the efficiency implications of federal policy toward local governments and, thereby, enable a more precise characterization of local government behaviour in fiscal federalism.en
dc.language.isoengen
dc.publisher|aCenter for Economic Studies and ifo Institute (CESifo) |cMunichen
dc.relation.ispartofseries|aCESifo Working Paper |x2385en
dc.subject.jelH7en
dc.subject.jelH3en
dc.subject.jelH1en
dc.subject.ddc330en
dc.subject.keywordTax vs expenditure optimizationen
dc.subject.keywordfederalismen
dc.subject.keywordendogenous commitmenten
dc.subject.keywordfiscal incentivesen
dc.subject.keywordpolicy interactionen
dc.subject.stwKommunale Finanzpolitiken
dc.subject.stwFinanzföderalismusen
dc.subject.stwFinanzausgleichen
dc.subject.stwÖkonomischer Anreizen
dc.subject.stwTheorieen
dc.titleHow do local governments decide on public policy in fiscal federalism?: tax vs. expenditure optimization-
dc.typeWorking Paperen
dc.identifier.ppn577509829en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

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