This paper provides a theoretical view of the central-local relationships in China. Decentralization and the autonomy of local governments have been a crucial element for the reform process. These intergovernmental …scal relations have been changing since 1978 and they are founded on a...

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The purpose of this note is to correct an error in the seminal article on secession by Buchanan and Faith (1987). In their paper, Buchanan and Faith neglected an important effect: political separation affects markets and consequently individual private incomes.

We consider the classic Allingham and Sandmo (1972) tax compliance problem in the context of the Choquet-Schmeidler Expected Utility (CSEU) model, using the Non—Extremal Outcome (NEO)- additive capacities proposed by Chateauneuf, Eichberger, and Grant (2004), in which Knightian uncertainty...

We consider as endogenous the choice of the delegation' rule in a political integration process between two countries. We study three potential types of delegation: strong, weak or no delegation, this last case corresponding to a referendum. We show that populations decide to bind themselves by...

In this paper, we show that considering the classic Allingham and Sandmo (1972) tax compliance problem under Rank-Dependent Expected Utility (RDEU) axiomatics provides a simple explanation for the "excess" level of full compliance observed in empirical studies, and which standard Expected...

The purpose of this paper is to provide a survey on political fragmentation. We present a simple formalization which allows the confrontation of different assumptions choosen by the authors. The heterogeneity of voters induces political fragmentation, while scale economies in public good's...

We consider the classic Allingham and Sandmo (1972) tax compliance problem in the context of the Choquet-Schmeidler Expected Utility (CSEU) model, using the Non-Extremal Outcome (NEO)-additive capacities proposed by Chateauneuf et al (2002), in which Knightian uncertainty (ambiguity) exists...

We address in this paper the issue of leadership when two governments provide public goods to their constituencies with cross border externalities as both public goods are valued by consumers in both countries. We study a timing game between two different countries: before providing public...

We investigate whether foreign aid affects the probability of incumbent’s re-election and then the Schumpeterian quality of democracy in developing countries. We present a simple theoretical framework, which captures the competitiveness of elections through the Tullock’s approach based on...