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This paper overviews theoretical and empirical contributions that study political borders from an economic perspective. It reviews theories of the number and size of nations focused on the trade-off between economies of scale in public-good provision and heterogeneity of preferences over public...
Persistent link: https://www.econbiz.de/10014290075
We study fiscal spending by supranational unions, where participation is voluntary and countries bargain over contributions to and the allocation of a central budget. We establish and explore the link between the budget's allocation and nations' contributions that occurs since bargaining power...
Persistent link: https://www.econbiz.de/10013370100
In this paper, we take up the question why a group of sovereign countries is willing to form a federation even if residents of the high-income region suspect potential immigrants to be net beneficiaries of the tax and transfer system. We argue that income uncertainty alone cannot satisfactorily...
Persistent link: https://www.econbiz.de/10010296313
This paper investigates how the abolishment of a ban on tuition fees affects the quality of higher education with centralized and decentralized decision making. It is shown that tuition fees fully crowd public funds under centralization and quality of university education does not improve....
Persistent link: https://www.econbiz.de/10010296820
The "Decentralization Theorem" (Oates, 1972) is central to the discussion of fiscal federalism. We revisit the role of …
Persistent link: https://www.econbiz.de/10010264235
The political blessings of federalism are the core of our discussion. These benefits are operationalized as the … the population size of the nation: Next, the question is addressed how the gains from federalism react to variations in … the number of regions: The complementary question what happens to the gains of federalism when increasing the number of …
Persistent link: https://www.econbiz.de/10010270385
This study analyzes the interaction between distorted election choices and the architecture of government with a focus on the implications for the accountability of politicians. Contrasting centralized with decentralized political systems, it is shown that centralization is likely to result in...
Persistent link: https://www.econbiz.de/10010271479
Random factors such as bad weather or exogenous economic shocks affect the re-election of politicians and can reduce accountability. Such distorted election choices interact with the architecture of government. Contrasting centralized with decentralized political systems, this study shows that...
Persistent link: https://www.econbiz.de/10010274383
This paper investigates how the abolishment of a ban on tuition fees affects the quality of higher education with centralized and decentralized decision making. It is shown that a marginal introduction of tuition fees fully crowds out public funds under centralization, whereas educational...
Persistent link: https://www.econbiz.de/10010274860
paper compares three regimes (centralization, decentralization and federalism) in an economy where individuals choose their … move from decentralization to federalism, called moral federalism, is welfare improving behind the veil of ignorance if and … only if centralization dominates decentralization, and (ii) for the group that favors a restrictive policy moral federalism …
Persistent link: https://www.econbiz.de/10010261228