A review of the history of the United States from its colonial origins shows how Americas successful development has always been guided by two basic principles: representative democracy, and a proper division of power between national and subnational governments. The United States of America was...

We analyze a model of moral hazard in local public services which could be efficiently managed by officials under local democratic accountability, but not by officials who are appointed by the ruler of a centralized autocracy. The ruler might prefer to retain an official who diverted resources...