Vertical externalities with lump-sum taxes: how much difference does unemployment make?

This paper analyses how the existence of unemployment affects the conventional approach to vertical externalities. We discuss the optimality rule for the provision of public inputs both in a unitary and in a federal state. Our findings indicate that decentralising spending responsability on public i...

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Bibliographic Details
Main Authors: Diego Martinez-Lopez, Tomas Sjongren
Format: Article
Language:English
Published: University of A Coruna 2014-06-01
Series:European Journal of Government and Economics
Subjects:
Online Access:http://revistas.udc.es/index.php/ejge/article/view/4298