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question then is why this has not happened in China. We argue that the answer lies in the degree of political centralization … researchers have argued that federalism could play a central role in development. We agree, but with an important caveat. We … believe the experience of Russia indicates that another ingredient is crucial, namely political centralization …
Persistent link: https://www.econbiz.de/10012471154
We provide a model with a federal government and multiple local governments, the former with power to levy an income tax for redistribution, and the latter choosing a local income tax, property tax, lump-sum tax or subsidy, and a local public good. Policy is set by majority choice at each tier...
Persistent link: https://www.econbiz.de/10012480750
We present a model where heterogeneous districts choose both whether to experiment and the policies to experiment with. Since districts learn from each other, the first-best requires that policy experiments converge so that innovations are useful also for neighbors. However, the equilibrium...
Persistent link: https://www.econbiz.de/10012459061
This paper studies the repayment of regional debt in a multi-region economy with a central authority: who pays the obligation issued by a region? With commitment, a central government will use its taxation power to smooth distortionary taxes across regions. Absent commitment, the central...
Persistent link: https://www.econbiz.de/10012467021
Both the U.S. and the EU are an economic union: There is a single market for goods, capital, finance, and labor. That is, there is free mobility of goods and services, physical and financial capital, and labor among the member countries of the union. Nevertheless, there is much higher degree of...
Persistent link: https://www.econbiz.de/10012496111
essay reviews three alternative models of subsidiarity -- decentralized federalism, centralized federalism, and democratic … federalism -- and argues the current European Economic Community has evolved from decentralized to centralized to a fully …
Persistent link: https://www.econbiz.de/10012472252
attendance. In particular, the common perception that centralization of public school finance will necessarily lead to greater … centralization involves an extreme equalization of the kind observed in California. Furthermore, if centralization occurs through … schools in centralizing states imply that general public school quality does not drop as a result of such centralization …
Persistent link: https://www.econbiz.de/10012470365
pluralism with privilege to the absence of both. They worried that centralization, democratic or otherwise, might be the …
Persistent link: https://www.econbiz.de/10012457413
a strong association between pre-colonial centralization and contemporary comparative development both across and within … countries. We also document that the strong link between pre-colonial political centralization and regional development -as …
Persistent link: https://www.econbiz.de/10012458154
We develop a framework that examines the organizational challenges faced by central rulers governing large territories, where administrative power needs to be delegated to local elites. We describe how economic change can motivate rulers to empower different elites and emphasize the interaction...
Persistent link: https://www.econbiz.de/10014576570