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Overlapping soft budget constraints
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DOI：10.1016/j.jue.2009.09.011.png)
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Our paper identifies a potential problem with decentralization at a time when its virtues are widely extolled. We show that responsibility for equalization at multi-levels within a decentralized federation creates an overlapping equalization policy that can worsen fiscal discipline. Contrary to Qian and Roland (1998), we also show in our set-up that fiscal competition among regional rescuers does not act as a commitment device to harden the local budget constraint. (c) 2009 Elsevier Inc. All rights reserved.
Keyword:
Soft budget constraint
Fiscal federalism
Capital tax competition
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4.8
论文数:
2.2K
被引数:
7.3K
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