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Free-riding or Internalizing? An Opportunistic View on Decentralization versus Centralization
Fiorillo, Fabio; Sacchi, Agnese - CESifo - 2011
comparing decentralized and centralized system. As in the recent Second Generation Theory (SGT) of fiscal federalism (Seabright … federalism - is proposed in order to compare decentralized versus centralized solution: the gains from internalizing …. Given this general framework, the convenience of decentralization versus centralization mainly depends on the interaction …
Persistent link: https://www.econbiz.de/10008833915
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Financing Bologna, the Internationally Mobile Students in European Higher Education
Gérard, Marcel - CESifo - 2008
Despite the importance of the Bologna process for the mobility of students, and the further mobility of graduates, as well as for peace, growth and welfare in that area, nothing has been decided so far for the financing of internationally mobile students, so that the burden of that financing,...
Persistent link: https://www.econbiz.de/10005405967
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Federalism and Accountability with Distorted Election Choices
Kessing, Sebastian - CESifo - 2009
Random factors such as bad weather or exogenous economic shocks affect the re-election of politicians and can reduce accountability. Such distorted election choices interact with the architecture of government. Contrasting centralized with decentralized political systems, this study shows that...
Persistent link: https://www.econbiz.de/10008583637
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Democracy with Group Identity
Hillman, Arye L.; Metsuyanim, Kfir; Potrafke, Niklas - CESifo - 2015
Group-based identity undermines democracy by impeding democratic change of government. A substantial literature has therefore studied how to make democracy consistent with group identity. We contribute to this literature by introducing the role of group decisiveness into voting incentives and...
Persistent link: https://www.econbiz.de/10011212080
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Electoral Competition as a Determinant of Fiscal Decentralization
Jametti, Mario; Joanis, Marcelin - CESifo - 2011
Fiscal decentralization is high on the agenda in policy fora. This paper empirically investigates the underlying causes … of fiscal decentralization, based on the predictions of a simple political economy model. We argue that the likeliness … support the relevance of political factors as determinants of fiscal decentralization. The relationship between central …
Persistent link: https://www.econbiz.de/10009294096
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Political Economy of Fiscal Unions
Fidrmuc, Jan - CESifo - 2013
I formulate a political-economy model of a fiscal union where the threat of secession imposes a limit on fiscal redistribution between regions. I argue that the trade-off between implementing the region’s preferred fiscal policy and benefiting from inter-regional risk sharing depends on the...
Persistent link: https://www.econbiz.de/10010681224
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Elections and de facto Expenditure Decentralization in Canada
Jametti, Mario; Joanis, Marcelin - CESifo - 2014
predictions of a new political economy model of partial decentralization. The analysis is based on an agency model, in which two … decentralization is endogenous and depends on the relative politi- cal conditions prevailing at each level of government. Consistent … with the model’s predictions, empirical results from a panel of Canadian provinces show that decentralization in a province …
Persistent link: https://www.econbiz.de/10010772271
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How to Tame two Leviathans? Revisiting the Effect of Direct Democracy on Local Public Expenditure
Galletta, Sergio; Jametti, Mario - CESifo - 2012
We explore how the vertical structure of direct democracy in a federal context affects expenditure decisions of sub-central governments. In so doing we revisit previous research on the effect of direct democratic institution on public policies. Particularly, the effect of upper-level (state)...
Persistent link: https://www.econbiz.de/10010592132
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Centralized Fiscal Spending by Supranational Unions
Simon, Jenny; Valasek, Justin Mattias - CESifo - 2013
We study fiscal spending by supranational unions, where participation is voluntary and countries bargain over contributions to and the allocation of a central budget. We explore the link between the allocation and nations’ contributions that occurs since bargaining power is endogenous, and...
Persistent link: https://www.econbiz.de/10010877969
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Environmental Tax Reform in a Federation with Rent-Induced Migration
Garon, Jean-Denis; Séguin, Charles - CESifo - 2015
We study the welfare effects of a revenue-neutral green tax reform in a federation. The reform consists of increasing a tax on a polluting input and reducing that on labor income. Households are fully mobile within the federation. Regions are unequally endowed with a nonrenewable natural...
Persistent link: https://www.econbiz.de/10011210783