Fiscal Policy, Deficits and Politics of Subnational Governments: The Case of the German Laender
AbstractThe first part of the paper briefly describes institutional aspects of the German federal system and examines the economic and fiscal performance of the German Laender since 1970. Taking into account the institutional settings, especially the fact that the German Laender cannot set tax rates individually, we develop a highly stylized model of subnational governments that do not have access to the tax rate instrument and thus have to use expenditures as a policy variable. The model implies an expenditure smoothing policy of subnational governments and complements the famous tax smoothing model. The empirical section examines whether governments of various ideology show significant differences in fiscal stabilization policy. Our results indicate that regional differences in public debt accumulation and public expenditure policy in general is largely determined by interregional differences in economic performance, whereas we do not find any significant impact on the ideological composition of the Laender governments. Copyright 2000 by Kluwer Academic Publishers
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Springer in its journal Public Choice.
Volume (Year): 102 (2000)
Issue (Month): 3-4 (March)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=100332
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page. reading lists or Wikipedia pages:
- Wikipedia:German-speaking Wikipedians' notice board/Umlaut and ß in Wikipedia (English)
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.