A note on public goods in a decentralized fiscal union: Implications of a participation constraint

This paper re-examines the question of whether federal ex-post redistribution in terms of public funds leads to under-provision of public goods when member states may leave the economic federation. We show that federal ex-post redistribution under a binding participation constraint does not necessarily mean under-provision of local and federal public goods.

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Year of publication:	2014
Authors:	Aronsson, Thomas ; Micheletto, Luca ; Sjögren, Tomas
Published in:	Journal of Urban Economics. - Elsevier, ISSN 0094-1190. - Vol. 84.2014, C, p. 1-8
Publisher:	Elsevier
Subject:	Public goods \| Fiscal federalism \| Ex-post redistribution \| Participation constraint

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Type of publication:	Article
Classification:	D61 - Allocative Efficiency; Cost-Benefit Analysis ; H41 - Public Goods ; H77 - Intergovernmental Relations; Federalism
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011077774