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This paper rises from the idea to highlight how traditional models of Fiscal Federalism are not be able to capture adequately the behavioral dynamics of economic systems. We stress the innovative aspects of complexity theory and the premises on which to base the analysis of Fiscal Federalism in this perspective. For this purpose, we consider Fiscal Federalism as a network of economic relationships between different complex adaptive and co-evolving systems, the jurisdictions, linked by strong interdependencies. We will proceed to model a landscape in which co-evolving jurisdictions have to find the optimal path to organize the local tax planning and to optimize their local economy.

Fitness Landscape and Tax Planning: NK Model for Fiscal Federalism