We provide an explanation why centralisation of political decision makingresults in overspending in some policy domains …

We propose a theory of tax centralization in politico-economic equilibrium. Taxation has dynamic general equilibrium … spending and taxation and create a role for inter governmental grants. The model provides an explanation for the centralization …

Centralisation of political decision making often fails to produce the desired results. For instance, it is frequently … argued that decision making within the European Union results in overspending and overregulation in some policy areas, while … decision making because local policy makers delegate bargaining to 'conservatives'. Underprovision is strongest when spillover …

We propose a theory of tax centralization and inter governmental grants in politico-economic equilibrium. The cost of … the local level. This renders the degree of tax centralization and the tax burden determinate even if none of the … traditional, expenditure-related motives for centralization considered in the fiscal federalism literature is present. If central …

We propose a theory of tax centralization and inter governmental grants in politico-economic equilibrium. The cost of … the local level. This renders the degree of tax centralization and the tax burden determinate even if none of the … traditional, expenditure-related motives for centralization considered in the fiscal federalism literature is present. If central …

words, government serves as our agent. Understood in light of Principal-Agent Theory (PAT) and Behavioral Principal …-Agent Theory (BPAT), a great deal of modern regulation can be helpfully evaluated as a hypothetical delegation. Shifting from …

): "Externalities in Economies with Imperfect Information and Incomplete Markets." In that paper he says: "There exist government …. Stiglitz has given us an inadequate and incomplete theory with inconsistent and ad hoc assumptions. His equations contain no … theory of government whatever and for that reason alone they cannot possibly provide us with real-world prescriptions. In …

model where a self-interested group is allowed to influence a public decision maker – and possibly the judicial authority …

This paper provides a political-economy explanation of the degree of centralization in economic policy making. To … determine which policies are to be centralized, regions select representatives who then negotiate the degree of centralization … and the regional cost shares of centrally decided policies. We show that the resulting degree of centralization is …