analyze the provision of public primary education in nineteenth-century Prussia which was characterized by a linguistically … centralization increases the provision of primary education relatively more in linguistically polarized counties. … polarized society and a decentralized education system. Using unique county-level data on education spending we show that …

public goods. Therefore, my findings indicate that decentralization can lead to a failure in the provision of local public …

public goods. Therefore, my findings indicate that decentralization can lead to a failure in the provision of local public …

expenditure on education. Using a single-period framework, education expenditure raises the productivity of individuals via a … human capital production function. The social welfare function is based on individuals’ (indirect) utilities. Education … the elasticity of the wage with respect to basic ability leads to lower education spending. …

We propose a theory of tax centralization and inter governmental grants in politico-economic equilibrium. The cost of … the local level. This renders the degree of tax centralization and the tax burden determinate even if none of the … traditional, expenditure-related motives for centralization considered in the fiscal federalism literature is present. If central …

structures that gives the policymaker additional bargaining power against lobbies. Thus, when compared to decentralization …, centralization reduces capture, and is more likely to be welfare enhancing in the presence of information asymmetries. Then, we apply …