Advanced Public Economics: Fiscal Federalism
Universität Basel, Spring 2021
Master in Wirtschaftswissenschaften
Prof. Dr. Kurt Schmidheiny
- Zoom link for live-streaming on ADAM.
(Please send me an email in case you do not yet have acces to ADAM)
Assigned Readings for Discussion in Class:
- April 27, 2021: Tiebout (1956). Reading task: 1-up, 2-up.
- May 4, 2021: Epple and Romer (1991). Reading task: 1-up, 2-up.
- May 11, 2021: Hansen and Kessler (2001). Reading task: 1-up, 2-up.
- May 20, 2021: Textbook, chapter 29, pp. 487-495. Reading task: 1-up, 2-up.
- Richard W. Tresch (2015), Public Finance: A Normative Theory, 3rd edition, Amsterdam: Elsevier. Available as e-book within the University network: http://www.sciencedirect.com/science/book/9780124158344
1. Facts on Fiscal Decentralization in Switzerland and around the World
- Blöchliger, Hansjörg and Josette Rabesona (2009), The Fiscal Autonomy of Sub-Central Governments: An Update. OECD Working Papers on Fiscal Federalism, 9.
- OECD Fiscal Decentralisation Database. Available online at: https://www.oecd.org/tax/fiscal-decentralisation-database.htm
- Marius Brülhart, Sam Bucovetsky and Kurt Schmidheiny (2014), Taxes in Cities. In: G. Duranton, J.V. Henderson and W. Strange (eds), Handbook of Regional and Urban Economics, Volume 5.
- Kurt Schmidheiny (2017), Emerging Lessons from Half a Century of Fiscal Federalism in Switzerland. Swiss Journal of Economics and Statistics, 153(2).
2. The Tiebout Model
- Tiebout, C. (1956), A pure theory of local expenditures. Journal of Political Economy, 64, pp. 416–424.
- Bewley, T. F. (1981), A Critique of Tiebout's Theory of Local Public Expenditures. Econometrica, 49(3), pp. 713-740.
- Boadway, R., Tremblay, J.-F. (2012), Reassessment of the Tiebout model. Journal of Public Economics, 96, pp. 1063–1078.
- Banzhaf, H. Spencer, and Randall P. Walsh (2008), Do People Vote with Their Feet? An Empirical Test of Tiebout’s Mechanism. American Economic Review 98(3), 843–863.
- Oates, Wallace E. (2006), The Many Faces of the Tiebout Model. In: The Tiebout Model at Fifty: Essays in Public Economics in Honor of Wallace Oates, edited by William A.Fischel, Cambridge, MA, Lincoln Institute of Land Policy.
- Oates, Wallace E. (1999), An Essay on Fiscal Federalism. Journal of Economic Literature, 37, pp. 1120-1149.
3. Urban Sorting Models
- Epple, Dennis, Romer, Thomas (1991), Mobility and redistribution. Journal of Political Economy, 99, 828–858.
- Epple, D., Platt, G.J. (1998), Equilibrium and local redistribution in an urban economy when households differ in both preferences and income. Journal of Urban Economics, 43, 23–51.
- Epple, D., Sieg, H. (1999), Estimating Equilibrium Models of Local Jurisdictions. Journal of Political Economy, 107, 645-681.
- Calabrese, S., Epple, D., Romano, R. (2012), Inefficiencies from metropolitan political and fiscal decentralization: failures of Tiebout competition. Review of Economic Studies 79 (3), 1081–1111.
- Hansen, Nico A., Kessler, Anke S. (2001), The political geography of Tax H(e)avens and Tax Hells. American Economic Review, 91, 1103–1115.
- Schmidheiny, Kurt (2006), Income segregation from local income taxation when households differ in both preferences and incomes. Regional Science and Urban Economics, 36(2), 270–299.
- Kuminoff, Nicolai V., V. Kerry Smith, and Christopher Timmins (2013), The New Economics of Equilibrium Sorting and Policy Evaluation Using Housing Markets. Journal of Economic Literature, 51(4), 1007–1062.