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  • Research:Fiscal Federalism
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  • Report IEB 2018

    IEB’s Report on Fiscal Federalism and Public Finance'18

    The Barcelona Institute of Economics (IEB) has published “IEB’s Report on Fiscal Federalism and Public Finance” 2018. For another year, the document compiles the various ‘IEB reports’ published during the year 2018 focused on the analysis of infrastructure financing, the use of fiscal policies in relation to the phenomenon of...

    2018/16: Long-lasting social capital and its impact on economic development: the legacy of the commons

    Daniel Montolio, Ana Tur-Prats

    This paper analyzes the historical determinants and long-term persistence of social capital, as well as its effect on economic development, by looking at the legacy of the commons in a Spanish region. In medieval times, common goods were granted to townships and were managed collectively by local citizens. This enabled...

    2018/06: Relocation of the rich: migration in response to top tax rate changes from Spanish reforms

    David R. Agrawal, Dirk Foremny

    A recent Spanish tax reform granted regions the authority to set income tax rates, resulting in substantial tax differentials. We use individual-level information from Social Security records over a period of one decade. Conditional on moving, taxes have a significant effect on location choice. A one percent increase in the...

    2018/04: Popularity shocks and political selection

    Francisco Cavalcanti, Gianmarco Daniele, Sergio Galletta

    We observe that popularity shocks are crucial for electoral accountability beyond their effects on voters’ behaviors. By focusing on Brazilian politics, we show that the disclosure of audit reports on the (mis)use of federal funds by local administrators affects the type of candidates who stand for election. When the audit...

    2018/03: Abandon ship? Party brands and politicians’ responses to a political scandal

    Gianmarco Daniele, Sergio Galletta, Benny Geys

    How do politicians react to a political earthquake? In this article, we study politicians’ – rather than voters’ – responses to the main political scandal in Italian recent history (Tangentopoli), and overcome endogeneity concerns by analysing the local implications of this national corruption scandal. We find that local politicians withdraw...

    2017/17: Globalization and political structure

    Gino Gancia, Giacomo A. M. Ponzetto, Jaume Ventura

    The first wave of globalization (1830-1914) witnessed a decline in the number of countries from 125 to 54. Political consolidation was often achieved through war and conquest. The second wave of globalization (1950-present) has led instead to an increase in the number of countries to a record high of more...

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