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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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We analyze the strategic interaction of regional and federal governments using a model that includes fiscal externalities in the form of inter-regional capital tax competition and technical externalities in the form of inter-regional spillovers. The federal government aims to correct for these...
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When households are immobile among regions, the decentralized provision of public goods that generate interregional benefit spillovers is inefficiently low. A model of interregionial migration is used to study the provision of such services in the presence of free mobility of households. Within...
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