The political economy of local fiscal equalization in the German States

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The main objective of this project is to comprehensively analyze thepolitical economy of intergovernmental fiscal equalization within theinstitutional laboratory of the German federation. As outlined in theinitial application, the project aims to contribute to the empiricalliterature on intergovernmental transfers in political economics andpublic finance. From a policy perspective, the results from thisproject may also be helpful for policy makers in Germany (andelsewhere) for designing efficient and equitable intergovernmentaltransfer schemes. As this is a follow-up application, one importantaim is to complete several subprojects that are still work inprogress. In addition, Ms. Lopes-da-Fonseca, whose Ph.D. studentposition is funded by the project, and I would also like to exploresome questions that were mentioned in the original application buthave been neglected hitherto.