-agent framework, it analyzes two alternative policy-decision schemes - "decentralization" and "centralization" - when "knowledge …

federalism in which centralization is less likely to occur where budget referendums are possible. The reason for this result is … that budget referendums reduce the extent to which pro-centralization regions can commit to a low level of spending … delegating the centralization choice to elected poli-cymakers. In addition, it reduces the ability of higher level policy …

This paper analyzes the relationship between the size of an economic union and the degree of policy centralization. We … consider a political economy setting in which elected representatives bargain about the degree of centralization within the … outcome. We show that the relationship between the size of the union and centralization may be non-monotonic: Up to a certain …

implications of three different fiscal regimes for capital accumulation and aggregate national welfare. Full centralization of … is similar across regions. When regional differences exist but are not too large, the partial centralization regime is …