We study the strategic incentives of regional governments to allocate their budget to public investment and to public consumption expenditures against the background of an incentive-compatible redistribution policy set by the central government. Regional investment changes the productivity...

Critical-level (CL) utilitarianism with both fixed and variable critical levels is applied to the problem of redistribution in a federation with free mobility. We are interested in intra-regional inequality when redistribution policies are organized decentrally in a federation. Due to free...

Um den Standortvorteil des Föderalismus auch für die Zukunft zu sichern, braucht es eine Modernisierung desselben. Geklärt werden muss der Umgang mit den Transferleistungen zwischen den Kantonen und die Aufgabentrennung zwischen Bund und Kantonen. Eine weitergehende Dezentralisierung könnte...

This study analyzes the interaction between distorted election choices and the architecture of government with a focus on the implications for the accountability of politicians. Contrasting centralized with decentralized political systems, it is shown that centralization is likely to result in...