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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
Persistent link: https://www.econbiz.de/10011288448
The concept of fair representation of voters in a committee representing different voters' groups, such as national …
Persistent link: https://www.econbiz.de/10010322221
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 between federation and intergovernmental organization. If we measure something between by interval [0, 1], where 0...
Persistent link: https://www.econbiz.de/10010322290