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We consider a game between jurisdictions within a national economy. Capital migrates between jurisdictions to satisfy an equal return condition. The total supply of capital to the economy is a non-decreasing function of the national return. This allows us to cater for the case where capital has...
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Decentralization is among the most important global trends of the new century, yet there is still no consensus on how … which decentralization will improve the delivery of public goods. We begin by incorporating insights from political science … and economics into a rigorous and formal extension of the “decentralization theorem”. Our extension assumes inter …
Persistent link: https://www.econbiz.de/10013096591
of centralization stressed in the existing literature disappear, suggesting that the case for decentralization must be … driven by political economy considerations. Our political economy analysis assumes that under decentralization public goods …
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We analyze a model of moral hazard in local public services which could be efficiently managed by officials under local democratic accountability, but not by officials who are appointed by the ruler of a centralized autocracy. The ruler might prefer to retain an official who diverted resources...
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response. In this paper, we explore the effect that competition for residents induced by fiscal decentralization has on 'waste … an additional advantage of fiscal decentralization …
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