Public Goods in a Voluntary Federal 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 by adding the assumption that the member states are free to leave the economic federation. We show that federal ex-post redistribution leads to e¢ cient provision of local and federal public goods under certain conditions.

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Year of publication:	2012-11-13
Authors:	Aronsson, Thomas ; Micheletto, Luca ; Sjögren, Tomas
Institutions:	Nationalekonomiska Institutionen, Uppsala Universitet
Subject:	Public goods \| …scal federalism \| ex-post redistribution

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Extent:	application/pdf
Series:	Working Paper Series, Center for Fiscal Studies.
Type of publication:	Book / Working Paper
Notes:	Published as Aronsson, Thomas, Luca Micheletto and Tomas Sjögren, 'A note on public goods in a decentralized fiscal union: Implications of a participation constraint' in Journal of Urban Economics , 2014, pages 1-8. The text is part of a series Working Paper Series, Uppsala Center for Fiscal Studies Number 2012:12 7 pages
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/10010945032