Towards a European Constitution: Fiscal Federalism and the Allocation of Economic Competences
AbstractThe paper analyzes one important aspect of the constitutional debate: the allocation of econornie competences between the EU and the mernber states. It takes the theory of fiscal federalism as a starting point for an optimal allocation of economic competences. The main message of the theory is that a transfer of econornie competences from a lower to a higher political level always leads to a negligence of individual preferences and, therefore, can only be economically justified if national policies cause strong spillovers (externalities) to other jurisdictions. Based on this approach, the paper proposes an allocation of econornic conipetences that can serve as an overall. guideline for a European constitution.
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Bibliographic InfoPaper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1125.
Length: 28 pages
Date of creation: Aug 2002
Date of revision:
European constitution; fiscal federalism; allocation of competences;
Find related papers by JEL classification:
- F15 - International Economics - - Trade - - - Economic Integration
- F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
- H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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"What Does The European Union Do?,"
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Harvard Institute of Economic Research Working Papers
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