Simon, Jenny; Valasek, Justin - 2013 - This version: June 28, 2013
occurs since bargaining power is endogenous, and generically causes inefficiency. Interestingly, redistribution arises … decreasing efficiency, which becomes more severe as the centralized budget increases. We also analyze partial ex-ante commitment … through alternative decision-making institutions: Both majority rule and exogenous tax rules can improve efficiency. …