This paper studies the efficiency of decentralized leadership in federations where selfish regional governments provide regional and federal public goods and the benevolent central government implements interregional earmarked and income transfers. Without residential mobility, unlimited...

We examine the formation of hub-and-spoke and multilateral green technology international agreements. Green R&D provision produces two types of positive externalities, a global public good (i.e., reduction of carbon dioxide emissions) and spillovers in technology agreements. We utilize the...

The Perfectly Coalition-Proof Nash equilibrium (PCPN) concept is extended to allow for the emergence of overlapping coalitions in equilibrium. We apply the extended concept to study the efficiency and stability properties of environmental agreements to control emissions of correlated continental...

The concept of fair representation of voters in a committee representing different voters' groups, such as national representations in union of states, is discussed. This concept, introduced into discussion about voting rights in the Council of European Union in 2004, was narrowed to proposal of...

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...

We examine whether the strategic delegation problem in interregional negotiations can be solved by a governmental policy. It is well known that when an interregional negotiation is delegated to representatives, each region elects its representative strategically, resulting in inefficient...

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 federation supervised by a benevolent but not omniscient...

The concept of fair representation of voters in a committee representing different voters' groups, such as national representations in union of states, is discussed. This concept, introduced into discussion about voting rights in the Council of European Union in 2004, was narrowed to proposal of...

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],...

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,...