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This paper empirically investigates the underlying determinants of expenditure decentralization, based on the … 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 political conditions prevailing at each level of government. Consistent with …
Persistent link: https://www.econbiz.de/10010354073
We investigate the consequences of a peaceful shift of power from one social group to another. Theoretically, we show that an individual's decision to stay put or migrate depends on the difference between the political preferences of groups and the change in tax. Empirically, we use the case of...
Persistent link: https://www.econbiz.de/10013205087
Party performance in state and federal elections is highly interdependent. Federal elections impact regional voting dynamics and vice versa (electoral externalities). We quantify the extent of simultaneous electoral externalities between two layers of government. We apply vector autoregressions...
Persistent link: https://www.econbiz.de/10011615805
We investigate how changes in the administrative-territorial structure affect ethnic voting. We present an event study design that exploits the 2010 constitutional reform in Kenya, which substantially increased the number of primary administrative regions. We find (i) strong evidence for a...
Persistent link: https://www.econbiz.de/10012624851
decentralization ; fiscal federalism ; vertical interactions ; partial decentralization ; elections …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 …
Persistent link: https://www.econbiz.de/10009301206
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/10009665388
traditional, expenditure-related motives for centralization considered in the fiscal federalism literature is present. If central …
Persistent link: https://www.econbiz.de/10011523762
We show that regional heterogeneity of underlying fundamentals (e.g. economic history, geography, social capital) can lead to extreme voting in federations. When the outcome of federal policies – such as transfer schemes, market regulation or migration laws – depends on these fundamentals,...
Persistent link: https://www.econbiz.de/10012200220
Using data on federal highway grants from the Department of Transportation's Federal Highway Administration, this paper investigates several questions regarding the political economy of highway funding. We investigate the period 1994 - 2008 and examine whether political alignment and political...
Persistent link: https://www.econbiz.de/10011704667
This paper studies the efficiency of decentralized leadership in federations where selfish regional governments provide regional and federal public goods and the benevolent central government implements interregional earmarked and income transfers. Without residential mobility, unlimited...
Persistent link: https://www.econbiz.de/10011524602