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Federalism with Bicameralism

Author

Listed:
  • Grazzini Lisa

    (Department of Economics, University of Florence,Florence, Italy)

  • Petretto Alessandro

    (Department of Economics, University of Florence,Florence, Italy)

Abstract

We analyse how bicameralism can affect national fiscal policies in a federal country when vertical and horizontal externalities interact. Conditions are provided to show when, at equilibrium, the two chambers agree or disagree on the choice of a national capital tax rate, depending on whether or not the pivotal voter in the two chambers is the same.

Suggested Citation

  • Grazzini Lisa & Petretto Alessandro, 2015. "Federalism with Bicameralism," German Economic Review, De Gruyter, vol. 16(2), pages 138-160, May.
    • Handle: RePEc:bpj:germec:v:16:y:2015:i:2:p:138-160
    DOI: 10.1111/geer.12046
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    Cited by:

    1. is not listed on IDEAS
    2. Lisa Grazzini & Alessandro Petretto, 2017. "Spillover Effects in a Federal Country with Vertical Tax Externalities," Public Finance Review, , vol. 45(5), pages 701-720, September.
    3. Marco Alderighi & Christophe Feder, 2014. "Political competition, power allocation and welfare in unitary and federal systems," Working Paper series 23_14, Rimini Centre for Economic Analysis.

    More about this item

    Keywords

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    JEL classification:

    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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