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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
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
question then is why this has not happened in China. We argue that the answer lies in the degree of political centralization … believe the experience of Russia indicates that another ingredient is crucial, namely political centralization …
Persistent link: https://www.econbiz.de/10013231568
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
national state based on the political agenda effect. State centralization induces citizens of different backgrounds, interests … investments in conflict capacity. In the absence of state centralization, citizens do not necessarily band together because of … social democratic party may sometimes induce state centralization (by removing the commitment value of a non …
Persistent link: https://www.econbiz.de/10012991695
We study cross-country risk sharing as a second-best problem for members of a currency union using an open economy model with nominal rigidities and provide two key results. First, we show that if financial markets are incomplete, the value of gaining access to any given level of aggregate risk...
Persistent link: https://www.econbiz.de/10013102600