Acknowledgements

This dissertation would not have been completed without the assistance and support of a number of people. My admiration, gratitude and debt to Professor Marcel Thum, my teacher, role model and friend, have grown continuously since I first discussed my PhD proposal from Tehran in early 2004. Without his continuous support and encouragement, I was not able to finalize this dissertation which began in April 2006 on time. Also, special thanks to Professor Christian von Hirschhausen for his kind acceptance to be my second referee. I am indebted to my kind colleagues at the Faculty of Business and Economics of Technische Universität Dresden, especially at the Chair of Public Economics for their cooperation, encouragements and hospitality. Chapter two of this dissertation is a joint-work with Dr. Gunther Markwardt. I learnt a lot over my joint-work and frequent discussions with him. I must also appreciate the kind and constructive comments of my collegue Christian Lessman. Thanks to Annabel Payne for reading and commenting on different part of this dissertation. Special thanks to Babett Krausse for all of her efficient administrative coordinations and cooperations from the very beginning of my project a