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 …

rivalry in consumption of the publicly provided good. We identify three sources of welfare loss from decentralization … characteristics of the publicly provided good are an important determinant for the welfare costs of decentralization. …