Federalism with Bicameralism

Author:

Grazzini Lisa1,Petretto Alessandro1

Affiliation:

1. Department of Economics, University of Florence, Florence , Italy

Abstract

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.

Publisher

Walter de Gruyter GmbH

Subject

Economics and Econometrics

Reference35 articles.

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4. Vertical versus Horizontal Tax Externalities: An Empirical Test;Brülhart;Journal of Public Economics,2006

5. The Economics of Split-Ticket Voting in Representative Democracies;Chari;American Economic Review,1997

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