We construct a simple model of fiscal competition taking `rent-seeking' behavior of local governments into account and estimate a policy reaction function based on the model. We consider the scale of public input as each local government's policy tool. Local autonomies' method of seeking central...

We examine how international coordination between countries generates a trend to establish an international institution for the provision of global public goods. In the present model, the forces creating movement to international agreement are a politician's opportunistic motive for re-election,...

Two districts with divergent productivity levels engage in policy-making on the provision of local public goods that enhance future income and hence create a dynamic linkage across periods. The policy choices of district representatives are derived under alternative fiscal systems, and the...