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Prospects and limits of federal competition

Author

Listed:
  • Christian Baretti
  • Robert Fenge
  • Bernd Huber
  • Willi Leibfritz
  • Matthias Steinherr

Abstract

The structure German fiscal federalism is subject of the study. It describes the extent to which the concept of federal competition can be implemented in a system that up to has had a largely co-operative orientation. The study examines both the relationship between the federal government and the Länder and that of the Länder among themselves. It looks especially at the economic conditions that must be fulfilled so that federal competition does not lead to a permanent widening of the gap between Länder. The study examines the fiscal equalisation system, the current division of responsibilities among the federal, Länder and municipal levels as well as the prospects for an independent tax policy of the Länder. The analysis is based on the theory of fiscal federalism, on the experience of other federal systems (USA, Canada, Switzerland) as well as on empirical analyses (regressions of panel data, descriptive evaluations, etc.).

Suggested Citation

  • Christian Baretti & Robert Fenge & Bernd Huber & Willi Leibfritz & Matthias Steinherr, 2000. "Prospects and limits of federal competition," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 1.
    • Handle: RePEc:ces:ifobei:1
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    Citations

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    Cited by:

    1. Baretti, Christian & Huber, Bernd & Lichtblau, Karl, 2001. "Die Reform des Finanzausgleichs im Spannungsfeld zwischen ökonomischer Rationalität und Besitzstandsdenken," IW-Trends – Vierteljahresschrift zur empirischen Wirtschaftsforschung, Institut der deutschen Wirtschaft (IW) / German Economic Institute, vol. 28(2), pages 38-58.
    2. Christian Baretti & Bernd Huber & Karl Lichtblau, 2001. "Examining the law reforming the German revenue sharing system," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 54(11), pages 12-20, October.
    3. Lars P. Feld, 2004. "Le fédéralisme financier en Allemagne: Coopération ou concurrence?," Marburg Working Papers on Economics 200416, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    4. Helmle, S., 2006. "Thesen zur Vorstellungen und zur Kommunikation über Landwirtschaft," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 41, March.
    5. Christian Baretti, 2002. "Are states being punished for their successful efforts in attracting business? The incentives of the municipal finance system," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 55(07), pages 10-16, April.
    6. Kitterer, Wolfgang, 2002. "Die Ausgestaltung der Mittelzuweisungen im Solidarpakt II," FiFo Discussion Papers - Finanzwissenschaftliche Diskussionsbeiträge 02-1, University of Cologne, FiFo Institute for Public Economics.
    7. Konrad, Kai A. & Seitz, Helmut, 2001. "Fiscal federalism and risk sharing in Germany: the role of size differences [Risikokonsolidierung im Rahmen des deutschen Länderfinanzausgleichs: die Rolle von Größenunterschieden]," Discussion Papers, Research Unit: Market Processes and Governance FS IV 01-20, WZB Berlin Social Science Center.

    More about this item

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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