The identification of strategic interactions among local governments is typically plagued by endogeneity problems. This paper proposes an identification strategy that makes use of a multi-tier federal system. State-level fiscal reforms provide an arguably exogenous source of variation in tax rates of local jurisdictions. Moreover, state borders spatially bound the effects of state-level...
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This paper empirically investigates the underlying determinants of expenditure decentralization, based on the predictions of a new political economy model of partial decentralization. The analysis is based on an agency model, in which two levels of government are involved in the provision of a public good and voters are imperfectly informed about each government's contribution to the good, ...
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Previous studies have viewed Swiss health-care financing as particularly regressive. However, as the OECD Review of the Swiss Health System (2011) stated, the income-related inequities and the inter cantonal variations are still unexplored due to a lack of available information. The present paper aims to fill this information gap concerning the Swiss health system by exploring the...
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