Regional income disparity and the size of the Public Sector
This paper focuses on the question of how income inequality between two jurisdictions impacts upon government decision-making affecting the size of the public sector. We model policy choices as the outcome of regional representatives'negotiations in the legislature. We show that the more unequal inter-regional income distribution is, the greater the under-provision of public goods. Particularly, larger inter-regional income disparity leads to a smaller public sector. A wealthier economy as a result may have a relatively smaller government size when income disparity increases.
Year of publication: |
2008-11
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Authors: | Giuranno, Michele |
Institutions: | Institute of Public Policy and Public Choice - POLIS |
Saved in:
freely available
Extent: | application/pdf |
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Series: | POLIS Working Papers. - ISSN 2038-7296. |
Type of publication: | Book / Working Paper |
Language: | English |
Notes: | 26 pages |
Source: |
Persistent link: https://www.econbiz.de/10005077159
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