This paper examines policy centralization outcomes in a two-jurisdiction, political economy model of public good … choice procedures, namely, direct democracy and representative democracy. We show that policy centralization is more likely … device by a pro-centralization jurisdiction and induce a reluctant partner to cooperate. In these situations, policy …

centralization is not politically feasible, allowing an enhanced cooperation agreement among a subset of countries permits the latter … country, sub-union formation may be optimal. The relative advantage of a sub-union towards centralization increases when … they might lead to increased centralization. …

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 …