Swiss Economicblogs.org
VoxEU, October 11, 2016, with Martin Gonzalez-Eiras. HTML. The US fiscal system underwent a radical transformation around the time of the Great Depression. Perceived cost differences of revenue collection across levels of government, due to general equilibrium effects, can partly explain the rise of tax centralization and intergovernmental grants. We develop a micro-founded general equilibrium model that blends politics and macroeconomics. (See the working paper.)
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