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Since the fiscal equalization system among states in Germany was repeatedly the subject of controversial political discussions, there exist many proposals in economics for far-reaching reforms. However, these proposals are deficient because they do not take into account the necessity of political consensus as well as the fact of path dependencies of institutional change. The paper is aiming at a better foundation of scientific advice by “reconstructing” the actor’s incentives in terms of collective dilemmata. This institutional economics approach explains, with respect to the fiscal equalization system among the German states, which type of proposal has greater chances to be politically adopted.

zeitschrift für wirtschaftspolitik

Probleme des Länderfinanzausgleichs aus institutionenökonomischer Sicht: Ein Beitrag zu einer institutionenökonomischen Fundierung finanzwissenschaftlicher Politikberatung