Fiscal competition and European Union: contrasting perspectives |
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| Affiliation: | 1. Young Researchers and Elite Club, South Tehran Branch, Islamic Azad University, Tehran, Iran;2. Department of Electrical Engineering, South Tehran Branch, Islamic Azad University, Tehran, Iran;3. Department of Electrical and Computer Engineering, Communication, Computer and Industrial Network Research Center, Science and Research Branch, Islamic Azad University, Tehran, Iran;1. Institute of Physics of National Academy of Sciences of Ukraine, Prospect Nauki 46, Kiev 03028, Ukraine;2. School of Engineering & Computing Sciences, Durham University, Durham DH1 3LE, United Kingdom;1. Department of Public Health, Epidemiology and Health Economics, University of Liège, CHU Sart-Tilman, Bât B23, 4000 Liège, Belgium;2. Department of Clinical Chemistry, University of Liège, CHU Sart-Tilman, Bât B35, 4000 Liège, Belgium;3. Geriatric Department, CHU Sart-Tilman, Bât B35, 4000 Liège, Belgium |
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| Abstract: | This paper has two objectives. First, it provides an overview of the vast literature on fiscal competition. A major theme is that the desirability of such competition depends in important ways on one’s view of how the public sector works. This is a complex issue with some intriguing twists. Second, the paper explores the emerging structure of the public sector in the European Union in the presence of growing fiscal competition. From the perspective of traditional fiscal federalism, this structure may be ill-suited to performing two of the traditional tasks of public finance: support for the poor and macroeconomic stabilization. |
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