Shanmugam K. r. Madras School of Economics   Madras School of Economics Madras School of Economics Gandhi Mandapam Road Chennai, Tamil Nadu 600 025 India   shanmugam@mse.ac.in   www.mse.ac.in           JEL Areas: H3 : Fiscal Policies and Behavior of Economic Agents: General H7 : State and Local Government; Intergovernmental Relations: General