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Inefficiencies from Metropolitan Political and Fiscal Decentralization : Failures of Tiebout Competition

Calabrese, Stephen - 2011

-best allocation and show efficiency can be implemented with decentralization using head taxes. We calibrate the model and compare … decentralization and property taxation are large, dissipating most if not all the potential welfare gains that efficient … decentralization could achieve. In property tax equilibrium centralization is frequently more efficient! An externality in community …

Persistent link: https://www.econbiz.de/10012461406

Expenditure Competition

Gordon, Roger H. - 2001

response. In this paper, we explore the effect that competition for residents induced by fiscal decentralization has on 'waste … an additional advantage of fiscal decentralization …

Persistent link: https://www.econbiz.de/10012470537

Decentralized Mining in Centralized Pools

Cong, Lin William - 2019

The rise of centralized mining pools for risk sharing does not necessarily undermine the decentralization required for … decentralization, because larger pools better internalize their externality on global hash rates, charge higher fees, attract …

Persistent link: https://www.econbiz.de/10012479545

Confidence, Crashes and Animal Spirits

Farmer, Roger E.A. - 2009

This paper presents a model of the macroeconomy that reformulates what I take to be two important ideas from Keynes General Theory. The first is that there may be a continuum of steady state unemployment rates. The second is that beliefs select an equilibrium. I argue that search and matching...

Persistent link: https://www.econbiz.de/10012463802

Electoral Systems and Inequalities in Government Interventions

ⓡ, Garance Genicot - 2018

This paper studies the political determinants of inequality in government interventions under the majoritarian and proportional representation systems. Using a model of electoral competition with targetable government intervention and heterogeneous localities, we uncover a novel relative...

Persistent link: https://www.econbiz.de/10012480857

Politics and Economics in Weak and Strong States

Acemoglu, Daron - 2005

While much research in political economy points out the benefits of "limited government," political scientists have long emphasized the problems created in many less developed nations by "weak states," which lack the power to tax and regulate the economy and to withstand the political and social...

Persistent link: https://www.econbiz.de/10012467409

Optimal Interventions in Markets with Adverse Selection

Philippon, Thomas - 2010

We characterize cost-minimizing interventions to restore lending and investment when markets fail due to adverse selection. We solve a mechanism design problem where the strategic decision to participate in a government's program signals information that affects the financing terms of...

Persistent link: https://www.econbiz.de/10012462867

Experimentation in Federal Systems

Callander, Steven - 2013

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/10012459061

Impact of Government on Growth and Trade

Krueger, Anne O. - 1990

In this paper we attempt to test the development economist's perceptions of the negative contributions of governmental activities, as well as the positive contributions of other activities, to growth. This paper provides evidence on the importance of government behavior for economic growth and,...

Persistent link: https://www.econbiz.de/10012475456

Risks in China’s Financial System

Song, Zheng Michael - 2018

Motivated by growing concerns about the risks and instability of China's financial system, this article reviews several commonly perceived financial risks and discusses their roots in China's politico-economic institutions. We emphasize the need to evaluate these risks within China's unique...

Persistent link: https://www.econbiz.de/10012453483