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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/10013073557
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/10012910304
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/10013231568
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/10013225568
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/10012750657
We use variation in historical state centralization to examine the impact of institutions on cultural norms. The Kuba …
Persistent link: https://www.econbiz.de/10013010286
pluralism with privilege to the absence of both. They worried that centralization, democratic or otherwise, might be the …
Persistent link: https://www.econbiz.de/10013021037
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/10013047023
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/10013230372
In this paper we investigate the empirical correlates of political centralization using data from the Standard Cross … the importance of high population density, inter-state warfare and trade as factors leading to political centralization …. We find that while in the whole world sample these factors are indeed positively correlated with political centralization …
Persistent link: https://www.econbiz.de/10013087288