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, decentralization may represent a way of protecting local minority interests. … potential disadvantage with decentralization in our model is that local dominant groups with rather extreme preferences may win … the centralized solution may welfare dominate decentralization even in the absence of scale economics and interregional …
Persistent link: https://www.econbiz.de/10011509456
"extremeʺ type, decentralization may represent a way of protecting local minority interests. … potential disadvantage with decentralization in our model is that local dominant groups with rather "extremeʺ preferences may … result is that the centralized solution may welfare dominate decentralization even in the absence of scale economics and …
Persistent link: https://www.econbiz.de/10001787854
We model the trade-off between centralized and decentralized decision making over the provision of local public goods. Centralized decisions are made in a legislature of locally elected representatives, and this creates a conflict of interest between citizens in different jurisdictions. The...
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We extend the literature on local income tax competition by allowing for inter-jurisdictional spillovers and imperfect rivalry in consumption of a publicly provided good. Comparing decentralized second-best results of a theoretical model with an efficient benchmark, we identify three...
Persistent link: https://www.econbiz.de/10011436089
rivalry in consumption of the publicly provided good. We identify three sources of welfare loss from decentralization … characteristics of the publicly provided good are an important determinant for the welfare costs of decentralization. …
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