We develop a model with optimal shares of intergovernmental transfers, and we apply a simulation analysis of our model for the case of Mexico. The main outcomes of this paper are as follows: First, we provide optimal shares of intergovernmental funds to be allocated in each state considering the...

Contents: 1. Introduction: Decentralization and parties -- 2: Building the theory: Majoritarian electoral systems and party integration -- 3: Building the theory: Majoritarian electoral systems and non-integrated parties -- 4: Building the theory: Proportional representation and closed party...