Fiscal Incentive Effects of the German Equalization System /

Does reliance on transfers weaken fiscal discipline and encourage pro-cyclical fiscal policies in recipient subnational governments? Using fiscal reaction functions for a panel of the German Lander, this paper finds a positive answer to both questions. Net-recipient states (Lander, benefiting from t...

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Bibliographic Details
Main Author: Stehn, Sven Jari
Other Authors: Fedelino, Annalisa
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2009.
Series:IMF Working Papers; Working Paper ; No. 2009/124
Online Access:Full text available on IMF