Showing 1 - 10 of 342
. We show that corruption opportunities are lower under centralization at each period of time. However, centralization … makes more difficult for citizens to detect corrupt incumbents. Thus, corruption is easier under centralization for low … levels of political competition. We show that the relative advantage of centralization depends negatively on the quality of …
Persistent link: https://www.econbiz.de/10008468714
, centralization reduces capture, and is more likely to be welfare enhancing in the presence of information asymmetries. Then, we apply …
Persistent link: https://www.econbiz.de/10011083471
We study the impact of tax competition on equilibrium taxes and welfare, focusing on the jurisdictional fragmentation of federations. In a representative-agent model of fiscal federalism, fragmentation among jurisdictions with benevolent tax-setting authorities unambiguously reduces welfare. If,...
Persistent link: https://www.econbiz.de/10005666467
This paper provides a coherent, logical framework that connects the main issues concerning fiscal policy in an economic and monetary union. The focus is on normative issues within the European Union.
Persistent link: https://www.econbiz.de/10005791296
This paper examines a model of jurisdiction formation where individuals differ in both income and preferences, and where public provision choices within jurisdictions are the outcome of a political process, but can be supplemented by private contributions. Locational equilibria in this model can...
Persistent link: https://www.econbiz.de/10005791618
Interjurisdictional competition over mobile tax bases is an easily understood mechanism, but actual tax-base elasticities are difficult to estimate. Political pressure for reducing tax rates could therefore be based on erroneous estimates of the mobility of tax bases. We show that tax...
Persistent link: https://www.econbiz.de/10009371481
overspending, universalism and uniformity. Building on these findings, I develop a simple theory of fiscal (de-)centralization …
Persistent link: https://www.econbiz.de/10008554245
Governments do not have perfect information regarding the priorities and the needs of different groups in the economy. This lack of knowledge opens the door for different groups to lobby the government in order to receive the government’s support. We set up a model of hierarchical contests and...
Persistent link: https://www.econbiz.de/10005497910
This paper analyses policy centralization outcomes in a two-jurisdiction model of public good provision choices with … referendum and representative democracy. We show that policy centralization is more likely to occur if the choice to centralize … preferred level of the jurisdiction that least favours centralization, rather than to a compromise between the two jurisdictions …
Persistent link: https://www.econbiz.de/10005497894
This paper investigates economic determinants and effects of aggregate union membership in the Federal Republic of Germany. We establish that in the long run, high union membership levels coincide not only with a large labour force, but also with a high level of real wages, a small dispersion of...
Persistent link: https://www.econbiz.de/10005656160