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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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circumstances in India over the past twenty years to examine the consequences of democratization and fiscal decentralization within …
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I study how the distribution of environmental goods and income affect the economic valuation of local public goods. I find that how environmental inequality affects societal willingness to pay (WTP) for environmental local public goods is determined by their substitutability as well as by how...
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-specific public goods out of two complementary district-specific inputs. We compare equilibria in non-cooperative decentralization and … centralization welfare-dominates decentralization in most institutional settings and for a wide range of parameters, yet we can also … identify necessary and sufficient conditions for decentralization to welfare-dominate centralization. The setup features three …
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