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This paper provides an empirical test of a principal tenet of fiscal federalism: that spending discretion, when granted to localities, leads to public-sector heterogeneity, with public-good levels adjusting to suit local demands. The test is based on a simple model of partial fiscal...
Persistent link: https://www.econbiz.de/10013099563
interaction mitigates or reinforces antagonism towards other groups, the micro-founded theory we develop predicts that a country …
Persistent link: https://www.econbiz.de/10012964695
We study the efficient allocation of spending and taxation authority in a federation in which federal politicians are exposed to electoral uncertainty. We show that centralization may, but need not, result in a loss of electoral accountability. We identify an important asymmetry between positive...
Persistent link: https://www.econbiz.de/10013144284
liberalization. Comparing trade and education policy, we find that targeted education subsidies are more effective than tariffs as a …
Persistent link: https://www.econbiz.de/10013085747
The Netherlands has a unique tradition in which all major Dutch political parties provide CPB Netherlands Bureau for Economic Policy Analysis with highly detailed proposals for the tax benefit system in every national election. This information allows us to quantitatively measure the...
Persistent link: https://www.econbiz.de/10012991936
of education, inequality, and (natural) resources. We highlight two contrasting effects of education and human capital …The paper reexamines Lipset's theory of democratization, by distinguishing the role of (economic) development from that … accumulation. On the one side, education prompts economic growth and enriches the budget of the autocratic elite. On the other side …
Persistent link: https://www.econbiz.de/10012963389
We study adaptation to climate change in a federalist setting. To protect themselves against an increase in flood risk, regional governments choose among adaptation measures that vary with respect to their costs, the level of protection they offer, and the presence and nature of spillovers to...
Persistent link: https://www.econbiz.de/10012960103
health centers, as well as on school enrolment and quality of education. We triangulate the results from a logistic …
Persistent link: https://www.econbiz.de/10012943387
This paper revisits the fiscal quot;decentralization theoremquot;, by relaxing the role of the assumption that governments are benevolent, while retaining the assumption of policy uniformity. If instead, decisions are made by direct majority voting, (i) centralization can welfare-dominate...
Persistent link: https://www.econbiz.de/10012766903
Discrimination in access to public services can act as a major obstacle towards addressing racial inequality. We …
Persistent link: https://www.econbiz.de/10013013081