IDEAS home Printed from https://ideas.repec.org/a/bpj/jeehcn/v13y2003i4n3.html
   My bibliography  Save this article

Financial Federalism in Germany: Cooperation or Competition?

Author

Listed:
  • Feld Lars P.

    (Philipps-Université de Marbourg)

Abstract

In this article, German federalism is analyzed through its implications for public spending and for public revenue. The structure of government spending and taxation has evolved in the direction of greater centralisation. This tendency reveals itself (1) in the constitutional changes with regard to taxation, (2) the major territorial reforms and (3) in the increased influence of the federal state on the public spending of inferior levels of government. The evening out between authorities is too egalitarian and the effects on economic development are nefarious. In contrast to a unitary system with a powerful central government, this cooperative federation suffers from a drawback, namely, that the federal state can often not make decisions without the agreement of member states. The consequence is that some reforms are hindered. It is in this way that the need of a fiscal competition between member states in order to better economic policy in Germany makes it felt.Dans cet article, le fédéralisme allemand est analysé à travers ses implications pour les dépenses publiques et pour les recettes publiques. L'évolution des compétences en matière d'imposition et de dépenses indique une tendance à la centralisation. Celle-ci apparaît (1) dans les changements constitutionnels relatifs aux impôts, (2) dans les grandes réformes territoriales, et (3) dans l'augmentation de l'influence de l'État fédéral sur les dépenses publiques des autres niveaux gouvernementaux. La péréquation entre les collectivités est trop égalitaire et les effets sur le développement économique sont néfastes. Comparé à un système unitaire avec un puissant gouvernement central, ce fédéralisme coopératif a le désavantage d'un État fédéral qui ne peut pas souvent prendre une décision sans l'accord des états fédérés. Par conséquent, quelques réformes sont bloquées. C'est ainsi que se fait sentir un besoin de concurrence fiscale entre les fédérés afin d'améliorer a politique économique en Allemagne.

Suggested Citation

  • Feld Lars P., 2003. "Financial Federalism in Germany: Cooperation or Competition?," Journal des Economistes et des Etudes Humaines, De Gruyter, vol. 13(4), pages 1-24, December.
    • Handle: RePEc:bpj:jeehcn:v:13:y:2003:i:4:n:3
    DOI: 10.2202/1145-6396.1106
    as

    Download full text from publisher

    File URL: https://doi.org/10.2202/1145-6396.1106
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.2202/1145-6396.1106?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:jeehcn:v:13:y:2003:i:4:n:3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.