Federalism with Bicameralism |
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| Authors: | Lisa Grazzini Alessandro Petretto |
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| Institution: | Department of Economics, University of Florence |
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| Abstract: | 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. |
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| Keywords: | Fiscal federalism median voter bicameralism |
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