A subset of the costs (and benefits) of sub-national fiscal autonomy in federations is examined, with the major focus being road check-posts. The examination is done with reference to Indian states and using elementary, partial equilibrium, diagrammatic analysis. Empirical analyses of the...

The lemons model assumes that owners of used cars have an informational advantage over potential buyers with respect to the quality of their vehicles. Owners of bad cars will try to sell them to unsuspecting buyers while owners of good cars will hold on to theirs. Consequently, the quality of...