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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
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
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
Federal governance matters. Policy coordination allows the economic union to exercise monopsony power over migrants. Therefore the migration volumes under the policy-competition regime exceed those under the policy-coordination regime. With loose federal governance, competition over low-skilled...
Persistent link: https://www.econbiz.de/10012989129
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
The rise of centralized mining pools for risk sharing does not necessarily undermine the decentralization required for permissionless blockchains: Each individual miner's cross-pool diversification and endogenous fees charged by pools generally sustain decentralization, because larger pools...
Persistent link: https://www.econbiz.de/10012891776
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
We examine the relationship between the diffusion of advanced internet technology and the geographic concentration of invention, as measured by patents. First, we show that patenting became more concentrated from the early 1990s to the early 2000s and, similarly, that counties that were leaders...
Persistent link: https://www.econbiz.de/10013055507
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
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