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democracy, political decentralization has been thought to stimulate policy experimentation. We reexamine the political economy … social optimum, while decentralization leads to "too little." Three effects of centralization — an "informational externality …
Persistent link: https://www.econbiz.de/10010698753
The parsimony of economic theory provides general insights into an otherwise complex world. However, the most straightforward organizing principles from theory have not often taken hold in environmental policy or in the decentralized climate policy regime that is unfolding. One reason is...
Persistent link: https://www.econbiz.de/10010729335
Mexico has achieved a high degree of decentralisation in public services, but the Mexican fiscal federal system has important shortcomings. States and municipalities have become heavily dependent on federal transfers to finance a growing share of public spending. This leaves the burden of...
Persistent link: https://www.econbiz.de/10010231114
This paper tests the hypothesis that, by giving people more voice in the government decision-making process, fiscal decentralisation fosters social capital, measured in terms of interpersonal trust. Empirical evidence based on World Values Survey data and seemingly unrelated probit estimations...
Persistent link: https://www.econbiz.de/10012444721
centralization and decentralization are suboptimal as long as political bargaining does not take place. With bargaining, however, the … first best can often be achieved under decentralization, but not under centralization. At the root of this result is the …
Persistent link: https://www.econbiz.de/10005662248
wisdom, decentralization becomes optimal when coordination becomes very important. When coordination costs are symmetric …, decentralization dominates centralization irrespective of the magnitude of externalities and the heterogeneity of preferences. In the … case of discontinuous network effects, standardization never Pareto dominates decentralization. …
Persistent link: https://www.econbiz.de/10010574273
In this work we simulate the effects of tax autonomy of the Austrian states on the levels of public employment in each state. We show that depending on the strength of the public sector lobby, tax autonomy would require reduction of employment in the public sector between 25% and 35% of the...
Persistent link: https://www.econbiz.de/10011718756
The very essence of both federal and unitary countries is multi-tiered governments. This architecture typically involves some commonality of tax bases between higher- and lower-level authorities. This process points to the existence of vertical externalities, i.e. of an inefficiently high degree...
Persistent link: https://www.econbiz.de/10010541070
This survey encompasses multiple areas. The theoretical literature on environmental federalism continues to expand in … strategic interaction among states, the effects of President Reagan's decentralization of environmental policy, and possible …
Persistent link: https://www.econbiz.de/10010614178
This paper studies the effect of additional government revenues on political corruption and on the quality of politicians, both with theory and data. The theory is based on a political agency model with career concerns and endogenous entry of candidates. The data refer to Brazil, where federal...
Persistent link: https://www.econbiz.de/10010815501