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accountability. We also show that decentralization can only Pareto dominate centralization in economies with negative externalities. …
Persistent link: https://www.econbiz.de/10008583690
We analyze a simple model of local public good provision in a region comprising two districts, a city and a village. When districts remain autonomous and local public goods have positive spillover effects on the neighboring district, there is underprovision of public goods in both the city and...
Persistent link: https://www.econbiz.de/10005405770
This paper revisits the fiscal "decentralization theorem", by relaxing the role of the assumption that governments are …) centralization can welfare-dominate decentralization even if there are no externalities and regions are heterogenous; (ii …) decentralization can welfare-dominate centralization even if there are positive externalities and regions are homogenous. The intuition …
Persistent link: https://www.econbiz.de/10005181589
comparing decentralized and centralized system. As in the recent Second Generation Theory (SGT) of fiscal federalism (Seabright … production cost of the public good in each region, a different trade-off - from the traditional and new theory of fiscal …. Given this general framework, the convenience of decentralization versus centralization mainly depends on the interaction …
Persistent link: https://www.econbiz.de/10008833915
component analysis, seven aspects of both federalism and decentralization are used as variables for explaining differences in (1 … study adds to our knowledge on the transmission mechanisms of federalism and decentralization. …
Persistent link: https://www.econbiz.de/10005013947
This paper analyzes the effect of transport subsidies on the spatial expansion of cities, asking whether subsidies are a source of undesirable urban sprawl. While the cost-reducing effect of transport subsidies is offset by a higher general tax burden (which reduces the demand for space), the...
Persistent link: https://www.econbiz.de/10005181603
decentralization leads to fewer tax revenue but higher user charges. Thus, revenue decentralization favors a smaller size of government …
Persistent link: https://www.econbiz.de/10005766067
The direct impact of local public goods on welfare is relatively easy to measure from land rents. However, the indirect effects on home and job location, on land use, and on agglomeration benefits are hard to pin down. We develop a spatial general equilibrium model for the valuation of these...
Persistent link: https://www.econbiz.de/10010888446
Field-experimental studies have shown that people litter more in more littered environments. Inspired by these findings, many cities around the world have adopted policies to quickly remove litter. While such policies may prevent people from following the bad example of litterers, they may also...
Persistent link: https://www.econbiz.de/10010764300
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