Kochi, Ikuho; Rodríguez, Raúl A. Ponce - In: Estudios Económicos 26 (2011) 1, pp. 123-149
In this paper we develop a probabilistic voting model of inter-gov\-ern\-men\-tal transfers to explain the distribution and size of local public goods. We find that: i) The parties’ political competition for votes induces the central government to provide regional transfers that lead to Pareto...