Abstract
The authors thank Thushyanthan Baskaran, Fatma Deniz, Jan Schnellenbach and Anja Weber for valuable comments and research assistance as well as the German Science Foundation (DFG) for funding this project (DFG-SPP 1142).
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Aghion AR, Howitt P (1998) Endogenous Growth Theory. MIT Press, Cambridge
Akai N, Sakata M (2002) Fiscal Decentralization Contributes to Economic Growth: Evidence from State-Level Cross-Section Data for the United States. Journal of Urban Economics 52, pp 93–108
Anselin L, Varga A, Acs ZJ (1997) Local Geographic Spillovers between University Research and High Technology Innovations. Journal of Urban Economics 24, pp 422–448
Arrow K, Kurz M (1970) Public Investment, the Rate of Return, and Optimal Fiscal Policy. John Hopkins University Press, Baltimore
Audretsch DB, Feldman MP (1996) R&D Spillovers and the Geography of Innovation and Production. American Economic Review 86, pp 630–640
Baldwin RE, Krugman P (2004) Agglomeration, Integration and Tax Harmonization. European Economic Review 48, pp 1–23
Baldwin RE, Martin P (2004) Agglomeration and Regional Growth In: Henderson JV, Thisse JF (eds) Handbook of Regional and Urban Economics, vol 4, Elsevier, Amsterdam, pp 2671–2711
Bardhan P, Mookherjee D (2000) Capture and Governance at Local and National Levels. American Economic Review, Papers and Proceedings 90, pp 135–139
Behnisch A, Büttner T, Stegarescu D (2002) Public Sector Centralization and Productivity Growth: Reviewing the German Experience, ZEW Discussion Paper No. 02-03, Mannheim
Bernholz P, Vaubel R (eds) (2004) Political Competition, Innovation and Growth in the History of Asian Civilisations. Edward Elgar, Cheltenham
Berthold N, Fricke H (2007) Volkswirtschaftliche Auswirkungen der finanziellen Ausgleichssysteme in Deutschland. Discussion Paper No. 93, University of Würzburg
Berthold N, Drews S, Thode E (2001) Die föderale Ordnung in Deutschland — Motor oder Bremse des wirtschaftlichen Wachstums? Discussion Paper No. 42, University of Würzburg
Besley T, Case AC (1995) Incumbent Behavior: Vote-Seeking, Tax-Setting, and Yardstick Competition. American Economic Review 85, pp 25–45
Blankart CB (1996) Comment on Lars P. Feld and Gebhard Kirchgässner: The Economic Meaning of Subsidiarity. In: Holzmann R (ed) Maastricht: Monetary Constitution Without a Fiscal Constitution? Nomos, Baden-Baden, pp 227–230
Blankart CB (2007) Föderalismus in Deutschland und in Europa. Nomos, Baden-Baden.
Bodman P, Ford K (2006) Fiscal Decentralization and Economic Growth in the OECD. Unpublished Manuscript, University of Queensland, Brisbane
Borck R, Pflüger M (2006) Agglomeration and Tax Competition. European Economic Review 50, pp 647–668
Brakman S, Garretsen H, Van Marrewijk C (2002) Locational Competition and Agglomeration: The Role of Government Spending. CESifo Working Paper No. 775, Munich
Brakman S, Garretsen H, Van Marrewijk C (2006) Agglomeration and Aid. CESifo Working Paper No. 1750, Munich
Brennan G, Buchanan JM (1980) The Power to Tax. Cambridge University Press, Cambridge
Brueckner JK (1999) Fiscal Federalism and Capital Accumulation. Journal of Public Economic Theory 1, pp 205–224
Brueckner JK (2006) Fiscal Federalism and Economic Growth. Journal of Public Economics 90, pp 2107–2120
Bucovetsky S, Smart M (2006) The Efficiency Consequences of Local Revenue Equalization: Tax Competition and Tax Distortions. Journal of Public Economic Theory 8, pp 119–144
Burbidge J, Cuff K, Leach J (2006) Tax Competition with Heterogeneous Firms. Journal of Public Economics 90, pp 533–549
Camagni RP (1995) The Concept of Innovative Milieu and its Relevance for Public Policies in European Lagging Regions. Papers in Regional Science 74, pp 317–340
Caniëls MCJ (2000) Knowledge Spillovers and Regional Growth Edward Elgar, Cheltenham
Davoodi H, Zou H (1998) Fiscal Decentralization and Economic Growth: A Cross-Country Study. Journal of Urban Economics 43, pp 244–257
Desai RM, Freinkman LM, Goldberg I (2003) Fiscal Federalism and Regional Growth: Evidence from the Russian Federation in the 1990s. World Bank Policy Research Working Paper 3138, Washington, D.C.
Devereux MP, Griffith R, Simpson H (2007) Firm Location Decisions, Regional Grants and Agglomeration Externalities. Journal of Public Economics 91, pp 413–435
Döring T, Schnellenbach J (2006) What Do We Know about Geographical Knowledge Spillovers and Regional Growth?: A Survey of the Literature. Regional Studies 40, pp 375–395
Edwards RA (2005) The Structure of Authority, Federalism, Commitment and Economic Growth. Economic Theory 25, pp 629–648
Enikolopov R, Zhuravskaya E (2003) Decentralization and Political Institutions. CEPR Discussion Paper No. 3857, London
Feld LP (2005) Fiscal Equivalence and the Increasing Dispersion/Divergence of Public Goods Claims — Do We Need a New Interpretation? In: Färber G, Otter N (eds) Spatial Aspects of Federative Systems. Speyerer Forschungsberichte 242, Deutsches Forschungsinstitut für öffentliche Verwaltung, Speyer, pp 147–180
Feld LP (2007) Fiscal Federalism and Economic Growth in OECD Countries. Forthcoming in: Bergh A, Höijer R (eds) The Institutional Race. Edward Elgar, Cheltenham
Feld LP, Baskaran T, Dede T (2004) Fiscal Federalism and Economic Growth: Cross-Country Evidence for OECD Countries. Unpublished Manuscript, Philipps-University Marburg
Feld LP, Kirchgässner G, Schaltegger CA (2004) Fiscal Federalism and Economic Performance: Evidence from Swiss Cantons. Unpublished Manuscript, Philipps-University Marburg
Feld LP, Kirchgässner G, Schaltegger CA (2005) Fiskalischer Föderalismus und wirtschaftliche Entwicklung: Evidenz für die Schweizer Kantone. Jahrbuch für Regionalwissenschaft/Review of Regional Research 25, pp 3–25
Feld LP, Zimmermann H, Döring T (2003) Föderalismus, Dezentralität und Wirtschaftswachstum. Vierteljahreshefte zur Wirtschaftsforschung 72, pp 361–377
Feltenstein A, Iwata S (2005) Decentralization and Macroeconomic Performance in China: Regional Autonomy Has Its Costs. Journal of Development Economics 76, pp 481–501
Fisman R, Gattiv R (2002) Decentralization and Corruption: Evidence across Countries. Journal of Public Economics 83, pp 325–345
Frey RL (1977) Zwischen Föderalismus und Zentralismus: Ein volkswirtschaftliches Konzept des schweizerischen Bundesstaates. Lang, Bern
Huggins R (1997) Competitiveness and the Global Region: The Role of Networking. In: Simmie J (ed) Innovation, Networks, and Learning Regions? Routledge, London, pp 101–123
Iimi A (2005) Decentralization and Economic Growth Revisited: An Empirical Note. Journal of Urban Economics 57, pp 449–461
Inman RP, Rubinfeld DL (1997) Rethinking Federalism. Journal of Economic Perspectives 11(4), pp 43–64
Jin H, Qian Y, Weingast BR (2005) Regional Decentralization and Fiscal Incentives: Federalism, Chinese Style. Journal of Public Economics 89, pp 1719–1742
Jin J, Zou H (2005) Fiscal Decentralization, Revenue and Expenditure Assignments, and Growth in China. Journal of Asian Economics 16, pp 1047–1064
Justman M, Thisse JF, Van Ypersele T (2002) Taking the Bite Out of Fiscal Competition. Journal of Urban Economics 52, pp 294–315
Lejour AM, Verbon HAA (1997) Tax Competition and Redistribution in a Two-Country Endogenous-Growth Model. International Tax and Public Finance 4, pp 485–497
Lin JY, Liu Z (2000) Fiscal Decentralization and Economic Growth in China. Economic Development and Cultural Change 49, pp 1–23
Ludema RD, Wooton I (2000) Economic Geography and the Fiscal Effects of Economic Integration. Journal of International Economics 52, pp 331–357
Keilbach M (2000) Spatial Knowledge Spillovers and the Dynamics of Agglomeration and Regional Growth. Springer, Heidelberg/New York
Kind HJ, Knarvik KHM, Schjelderup G (2000) Competing for Capital in a Lumpy World. Journal of Public Economics 78, pp 253–274
Kotsogiannis C, Schwager R (2006) Political Uncertainty and Policy Innovation. Journal of Public Economic Theory 8, pp 779–805
Krugman P (1991) Increasing Returns and Economic Geography. Journal of Political Economy 3, pp 483–499
Krugman P (1999) The Role of Geography in Development. International Regional Science Review 22, pp 142–161
Madiès T, Ventelou B (2004) Federalism in an Endogenous Growth Model with Tax Base Sharing and Heterogeneous Education Services. Papers in Regional Science 83, pp 1–18
Martinez-Vazquez J, McNab RM (2002) Cross-Country Evidence on the Relationship between Fiscal Decentralization, Inflation, and Growth. In: National Tax Association (ed) Proceedings of the 94th Annual Conference on Taxation 2001. Washington, D.C, pp 42–47
Martinez-Vazquez J, McNab RM (2003) Fiscal Decentralization and Economic Growth. World Development 31, pp 1597–1616
Naumets I (2003) Fiscal Decentralization and Local Public Sector Efficiency. Unpublished Dissertation, National University of Kiew
Oates WE (1972) Fiscal Federalism. Harcourt Brace Jovanovich, New York
Oates WE (1990) Decentralization of the Public Sector: An Overview. In: Bennett RJ (ed) Decentralization, Local Governments and Markets. Clarendon Press, Oxford, pp 43–58
Oates WE (1993) Fiscal Decentralization and Economic Development. National Tax Journal 46, pp 237–243
Oates WE (1999) An Essay on Fiscal Federalism. Journal of Economic Literature 37, pp 1120–1149
Oates WE (2006) On the Theory and Practice of Fiscal Decentralization. Mimeo, University of Maryland
Ottaviano GIP, Thisse JF (2003) Agglomeration und Economic Geography. CEPR Discussion Paper No. 3838, London
Qiao B, Martinez-Vazquez J, Xu Y (2002) Growth and Equity Tradeoff in Decentralization Policy: China’s Experience. Georgia State University, International Studies Program, Working Paper 02-16, Georgia
Rauchway E (2006) The Role of Federalism in Developing the US during Nineteenth-Century Globalization, Research Paper No. 2006/72, United Nations University, Helsinki
Rauscher M (2005) Economic Growth and Tax-Competing Leviathans. International Tax and Public Finance 12, pp 457–474
Rauscher M (2006) Interjurisdictional Competition and Innovation in the Public Sector. Unpublished Manuscript, University of Rostock
Rauscher M (2007) Tax Competition, Capital Mobility and Innovation in the Public Sector. German Economic Review 8, pp 28–40
Richter WF (1994) The Efficient Allocation of Local Public Factors in Tiebout’s Tradition. Regional Science and Urban Economics 24, pp 323–340
Rodden J (2004) Comparative Federalism and Decentralization: On Meaning and Measurement. Comparative Politics 36, pp 481–500
Rodden J, Rose-Ackerman S (1997) Does Federalism Preserve Markets? Virginia Law Review 83, pp 1521–1572
Rose-Ackerman S (1980) Risk-Taking and Reelection: Does Federalism Promote Innovation? Journal of Legal Studies 9, pp 593–616
Salmon P (1987) Decentralization as an Incentive Scheme. Oxford Review of Economic Policy 3(2), pp 24–43
Sato M, Yamashige S (2005) Decentralization and Economic Development: An Evolutionary Approach. Journal of Public Economic Theory 7, pp 497–520
Schnellenbach J (2004) The Evolution of a Fiscal Constitution When Individuals Are Theoretically Uncertain. European Journal of Law and Economics 17, pp 97–115
Schnellenbach J (2004a) Dezentrale Finanzpolitik und Modellunsicherheit: Eine theoretische Untersuchung zur Rolle des fiskalischen Wettbewerbs als Wissen generierender Prozess. Mohr Siebeck, Tübingen
Sinn HW (2003) The New Systems Competition. Oxford University Press, Oxford
Stansel D (2005) Local Decentralization and Local Economic Growth: A Cross-Sectional Examination of US Metropolitan Areas. Journal of Urban Economics 57, pp 55–72
Stegarescu D (2005) Public Sector Decentralization. Measurement Concepts and Recent International Trends. Fiscal Studies 26, pp 301–333
Strumpf KS (2002) Does Government Decentralization Increase Policy Innovation? Journal of Public Economic Theory 4, pp 207–241
Thießen U (2003) Fiscal Decentralization and Economic Growth in High Income OECD Countries. Fiscal Studies 24, pp 237–274
Thießen U (2003a) Fiscal Federalism in Western European and Selected Other Countries: Centralization or Decentralization? What Is Better for Economic Growth. Unpublished Manuscript, DIW Berlin
Tiebout CM (1956) A Pure Theory of Local Expenditures. Journal of Political Economy 64, pp 416–424
Treisman D (2000) The Causes of Corruption: A Cross-National Study. Journal of Public Economics 76, pp 399–457
Treisman D (2002) Defining and Measuring Decentralization: A Global Perspective. Unpublished Manuscript, UCLA
Wallis JJ (1999) Early American Federalism and Economic Development, 1790–1840. In: Panagariya A, Portnoy P, Schwab R (eds) Environmental and Public Economics: Essays in Honor of Wallace E. Oates. Edward Elgar, Cheltenham, pp 283–309
Weingast BR (1995) The Economic Role of Political Institutions: Market-Preserving Federalism and Economic Development. Journal of Law, Economics and Organisation 11, pp 1–31
Wellisch D (2000) Theory of Public Finance in a Federal State. Cambridge University Press, Cambridge
Wildasin DE (2003) Fiscal Competition in Space and Time. Journal of Public Economics 87, pp 2571–2588
Wilson JD (1999) Theories of Tax Competition. National Tax Journal 52, pp 269–304.
Wilson JD, Wildasin DE (2004) Capital Tax Competition: Bane or Boon? Journal of Public Economic 88, pp 1065–1091
Woller GM, Phillips K (1998) Fiscal Decentralization and LDC Economic Growth: An Empirical Investigation. Journal of Development Studies, 34, pp 139–148
Yilmaz S (2000) The Impact of Fiscal Decentralization on Macroeconomic Performance. In: National Tax Association (ed) Proceedings of the 92nd Annual Conference on Taxation 1999. Washington, D.C, pp 251–260
Xie D, Zou H, Davoodi H (1999) Fiscal Decentralization and Economic Growth in the United States. Journal of Urban Economics 45, pp 228–239
Zhang T, Zou H (1998) Fiscal Decentralization, Public Spending, and Economic Growth. Journal of Public Economics 67, pp 221–240
Zhang T, Zou H (2001) The Growth Impact of Intersectoral and Intergovernmental Allocation of Public Expenditure: With Applications to China and India. China Economic Review 12, pp 58–81
Zimmermann H (1990) Fiscal Federalism and Regional Growth. In: Bennett RJ (ed) Decentralization, Local Governments, and Markets: Towards a Post-Welfare Agenda. Oxford University Press, Oxford, pp 245–264
Zimmermann H (2002) Fiscal Federalism and National Growth. Economic Review of Toyo University. Tokio, pp 189–200
Zou H (1996) Taxes, Federal Grants, Local Public Spending, and Growth. Journal of Urban Economics 39, pp 303–317
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2007 Springer-Verlag Berlin Heidelberg
About this chapter
Cite this chapter
Feld, L.P., Zimmermann, H., Döring, T. (2007). Fiscal Federalism, Decentralization and Economic Growth. In: Baake, P., Borck, R. (eds) Public Economics and Public Choice. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-72782-8_6
Download citation
DOI: https://doi.org/10.1007/978-3-540-72782-8_6
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-72781-1
Online ISBN: 978-3-540-72782-8
eBook Packages: Business and EconomicsEconomics and Finance (R0)