Previous literature widely assumes that taxes are optimized in local public finance while
expenditures adjust residually. This paper endogenizes the choice of the optimization …

This book is a standard, but new-style, textbook on public finance. It provides instructors and
students with an overview of the literature so that students can attain an overall …

There is a growing body of literature on the commitment problem of interregional transfers.
The problem occurs because of an ex post bailout by a central government leading to ex …

This paper analyzes whether changes in the timing of equalizing transfers to state
governments necessitate an adjustment in federal corrective policy. According to the existing …

Federal and state governments often differ in the capacity to pre-commit to expenditure and
tax policy. Whether the implied sequence of public decisions has any efficiency implications …

This paper investigates how the soft-budget constraint with grants from the central
government to local governments tends to internalize the vertical externality of local public …

This paper explores governments' and private agents' incentives to implement or postpone
fiscal structural reform attempts. Both fiscal consolidation and fiscal reorganization often …

This paper analyzes the introduction of an automatic correction mechanism (ACM) in an
economic union whose member states expect to be bailed out in the case of a debt crisis. An …

The authors deal with a certain type of timing problem with the central government's
allocation of subsidies to local governments, called a``soft budget constraint (SBC) …

So far, we have regarded the government as one agent. In reality, there are many
governments at different levels of the public sector. From now on, we consider multiple …