Acknowledgments 1. Fiscal decentralization: benefits and problems 2. Locational efficiency and efficiency-supporting tax systems 3. Perfect interregional competition 4. Interregional tax competition for mobile capital 5. Optimal structure of local governments 6. Incentive equivalence through perfect household mobility 7. Efficiency and the degree of household mobility 8. Decentralized redistribution policy 9. Decentralization and intergenerational problems 10. Informational asymmetry between the regions and the center 11. Conclusions References Index.
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