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 Institutional Design of Federal Systems: Theory and Empirical Evidence
Priority Programme of the German Research Foundation (DFG)
 
Objective The primary objective of the research group is an all-embracing analysis of federalism. A special focus is set on fiscal federalism in Germany and Europe, taking the respective institutional and political conditions as well as possibilities of design into consideration. The vertical relations between the political subdivisions (federal – state – municipal - social security systems, nation states - EU) will be analyzed together with the horizontal relations (between states, e.g. through fiscal equalization schemes (Länderfinanzausgleich), between municipalities, e.g. through tax competition, between member countries of the EU). This proceeding shall transcend the dominating approach in public finance of vertical and horizontal analysis of competition effects (e.g. taxes, subsidies, expenditures). It is designed to encompass the study of political and institutional mechanisms of control and governance with respect to their impact on the financial conduct of governments, economic growth and welfare. Building on the expected results, consequences from the German and international experience shall be derivable for a European federal system of the future and the development of federal systems in countries of Middle and Eastern Europe.

Considering the quantitative and empirical work in the field of public finance, research in Germany and other European countries lags well behind the state of research in the United States. A second objective of the research group is therefore to close the gap in this field of economics. Furthermore, there is little interaction between the study of federalism in political science, the financial law literature and the federalism research in economics. Therefore, a third objective of this program is to encourage interdisciplinary work between these disciplines, carrying results from political science and law over to economics, as well as from economics into the relevant sub-disciplines of political science and law.
   
Structure The underlined quantitative and empirical emphasis of this approach results in an orientation toward problems with actual or future relevance for fiscal policy. A further objective is therefore to intensify and encourage communication between scientists and practitioners, and to deliver scientifically well-founded bases for political decision-making.

Results of the project are published in different publications and data are collected. Events and workshops together with several single projects located at different German universities complete the project.
   
People Prof. Dr. Jürgen von Hagen, Christoph Bierbrauer
   
Publications A list of publications can be found here.
   
Contact Christoph Bierbrauer
Phone: 0228 / 73-1732
Email: christoph.bierbrauer@uni-bonn.de