This collection of essays on the economics of fiscal federalism contains original research by leading experts in North America and Europe. Reform of fiscal relations between central and subnational governments is an urgent priority in many countries since increased economic integration within and among countries means that goods, services, capital, and human resources can flow across political boundaries more easily than before. Theoretical and applied contributions present conceptual insights, as well as discussions of practical policy questions in countries such as Australia, France, South Africa and the US, the European Union, and transition economies. The structure of intergovernmental transfers, tax competition, and the fiscal implications of labor migration are analyzed for audiences in economics, political science, and public policy. Several of the essays were published in a different form in a special issue of International Tax and Public Finance.
• Assessment of changing tax systems in world's leading economies, including federal-state relations in specific countries and international associations such as NAFTA and the European Union • Offers both theoretical and policy approaches • Authors include leading scholars from North America and the UK/Europe
Preface; Contributors; Part I. Introduction: 1. Introduction David E. Wildasin; 2. Fiscal aspects of evolving federations: issues for policy and research David E. Wildasin; Part II. Theoretical Issues: 3. Efficiency and the optimal direction of federal-state transfers Robin Boadway and Michael Keen; 4. Interregional redistribution through tax surcharge Helmuth Cremer, Maurice Marchand and Pierre Pestieau; 5. Decentralized public decision making: the moral hazard problem Claude d'Aspremont and Louis-André Gérard-Varet; 6. Migration and income transfers in the presence of labor quality externalities Harry Huizinga; 7. Strategic provision of local public inputs for oligopolitistic firms in the presence of endogenous location choice Uwe Walz and Dietmar Wellisch; Part III. Policy and Practice: 8. The structure of urban governance in South African cities Junaid Ahmad; 9. Computable general equilibrium in local public finance and fiscal federalism: applications to local taxation, intergovernmental aide, and education vouchers Thomas Nechyba; 10. 'One people one destiny': centralization and conflicts of interest in Australian federalism Jeffrey D. Petchey and Perry Shapiro; Index.