In a constantly changing economic environment a country's ability to undertake institutional reforms is crucial to maintain economic growth and to promote the welfare of its citizens. A wide range of…
In this paper we use a simple bureaucracy model of fiscal illusion to analyze the impact of intergovernmental grants on the cost effciency of local jurisdictions. We find that a higher degree of redistribution…
This paper addresses the welfare effects of conditional grants when there is government failure on the subordinate (hereafter regional) level. Government failure on the regional level may occur due to the…
