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We show that regional heterogeneity of underlying fundamentals (e.g. economic history, geography, social capital) can lead to extreme voting in federations. When the outcome of federal policies – such as transfer schemes, market regulation or migration laws – depends on these fundamentals,...
Persistent link: https://www.econbiz.de/10012200220
This paper takes a mechanism design approach to federalism and assumes that local preferences are the private … information of local jurisdictions. Contractual federalism is defined as a strategy-proof contract among the members of the … coalition manipulations are equivalent to voting rules on uniform policies. -- Federalism ; Asymmetric Information ; Strategy …
Persistent link: https://www.econbiz.de/10008860044
The European Union (EU) is not de jure a federation, but after 50 years of institutional evolution it possesses attributes of a federal state. One can conclude that EU is something betweenʺ federation and intergovernmental organization. If we measure something betweenʺ by interval [0, 1],...
Persistent link: https://www.econbiz.de/10003880077
The Coase Theorem states that costless enforcement of voluntary agreements yields efficient outcomes. We argue that previous treatments fail to recognize the full meaning of voluntariness: it requires a two-stage game; a non-cooperative participation decision, followed by Coaseian bargaining only...
Persistent link: https://www.econbiz.de/10014063225
Few studies on federalism analyze the role of courts as safeguards of the federal arrangement, and those that do tend … may not enforce compliance with federalism. It argues that politicians of either level of government anticipate the …
Persistent link: https://www.econbiz.de/10010458556
To explore the propagation of undesirable policies in a form of populist extremism, we construct a social learning model featuring agency problems. Politicians in different countries sequentially implement a policy. Voters learn the incumbent politician's type and the desirable policy by...
Persistent link: https://www.econbiz.de/10012195578
Persistent link: https://www.econbiz.de/10012035237
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The concept of fair representation of voters in a committee representing different voters' groups, such as national …
Persistent link: https://www.econbiz.de/10003790289
We study adaptation to climate change in a federalist setting. To protect themselves against an increase in flood risk, regional governments choose among adaptation measures that vary with respect to their costs, the level of protection they offer, and the presence and nature of spillovers to...
Persistent link: https://www.econbiz.de/10011616351