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Federalism in Germany, Italy, and the European Union: History, Characteristics, and Perspectives

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  • Jochimsen Beate

    (Berlin School of Economics and Law (HWR),German Institute for Economic Research (DIW), Berlin, Germany)

Abstract

Federalism is always torn between the principles of subsidiarity and solidarity. Defining the federal structure of a country by finding the welfare-maximizing amount and design of government layers is challenging. Thereby, the financial endowment of different layers of government which they need to fulfill their respective tasks is an important aspect. European countries have chosen quite different federal designs to address the question of an optimal degree of fiscal decentralization. The aim of this paper is to analyze these different approaches for Germany, Italy, and the European Union. Parallels can be found in that all the three entities share a form of institutional asymmetry, a kind of fiscal bailout system, and a sort of fiscal equalization scheme.

Suggested Citation

  • Jochimsen Beate, 2018. "Federalism in Germany, Italy, and the European Union: History, Characteristics, and Perspectives," Journal for Markets and Ethics, Sciendo, vol. 6(1), pages 145-154, June.
    • Handle: RePEc:vrs:jmaeth:v:6:y:2018:i:1:p:145-154:n:15
    DOI: 10.2478/jome-2018-0034
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    References listed on IDEAS

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    4. Timm Bönke & Beate Jochimsen & Carsten Schröder, 2017. "Fiscal Equalization and Tax Enforcement," German Economic Review, Verein für Socialpolitik, vol. 18(3), pages 377-409, August.
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    More about this item

    Keywords

    Federalism; Germany; Italy; Europe;
    All these keywords.

    JEL classification:

    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • P51 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • N43 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Europe: Pre-1913

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