Yardstick competition and fiscal disparities: An experimental study

Giuseppe Di Liddo and Andrea Morone

Economics Letters, 2017, vol. 159, issue C, 134-137

Abstract: Recent theoretical research suggest that yardstick competition may be biased by the presence of fiscal disparities between local governments and that fiscal equalization may help in correcting this bias. This paper provides an empirical test of these theoretical predictions by means of a laboratory experiment.

Keywords: Yardstick competition; Fiscal equalization; Experiment (search for similar items in EconPapers)
JEL-codes: C91 H71 H76 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:159:y:2017:i:c:p:134-137

DOI: 10.1016/j.econlet.2017.07.033

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