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Theory of public finance in a federal state
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ISBN: 0521630355 0521026873 0511117035 0511015879 0511156324 0511329210 0511613318 128016185X 0511050909 1107115434 9780511015878 9780511117039 9780511613319 9780511050909 9780511156328 9786610161850 6610161852 9780521630351 9780521026871 Year: 2000 Publisher: Cambridge, U.K. New York Cambridge University Press

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Abstract

The central question of this book is whether the assignment of government functions to the individual jurisdictions in a federal state can ensure an optimal allocation of resources and a fair income distribution. The analysis thereby gives a new answer to the old question about the optimal degree of fiscal decentralization in a federal state. It shows that fiscal decentralization is a method to disclose the preferences of currently living and future generations for local public goods, to limit the size of the government, and to avoid excessive public debt finance. While the allocative branch of the government benefits from fiscal decentralization, it is difficult to obtain a distribution of incomes that differs from the outcome that the market brings along.

Public finance and public choice
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ISBN: 0198775792 9780198775799 0198775806 Year: 1997 Publisher: Oxford: Oxford university press,

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