AOYAMA, NAOTO; SILVA, EMILSON C. D. - In: Journal of Public Economic Theory 12 (2010) 2, pp. 323-343
Relying on differentiability assumptions and on conditions that guarantee interior solutions, we show that a federation featuring decentralized leadership, interregional spillovers, and labor attachment allocates resources efficiently under two sets of circumstances. The first is when the center...