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We analyze a simple model of local public good provision in a country consisting of a large number of heterogeneous regions, each comprising two districts, a city and a village. When districts remain autonomous and local public goods have positive spillover effects on the neighbouring district,...
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We analyze the political economy of monetary unification among countries with different quality of institutions. Countries with stronger institutions have lower public spending and better investment incentives, even under a stronger currency. Governments under weaker institutions spend more so...
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-framework? Which are the pros and cons of these scenarios? This paper combines economic theory, empirical analysis and insights … regarding EMU’s institutional history in order to come to a compromise proposal for an EMU between nationalism and federalism …. We take the present status quo acts as a starting point. We describe the tension between the arguments in economic theory …
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