Bulletin n. 1/2015 | ||
June 2015 | ||
Lisa Grazzini and Alessandro Petretto |
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Federalism with Bicameralism | ||
in German Economic Review , Volume 16, Issue 2 , 2015 , 138–160 | ||
We analyse how bicameralism can affect national fiscal policies in a federal country when vertical and horizontal externalities interact. Conditions are provided to show when, at equilibrium, the two chambers agree or disagree on the choice of a national capital tax rate, depending on whether or not the pivotal voter in the two chambers is the same. | ||