Simon, Jenny; Valasek, Justin Mattias - Abteilung "Ökonomik des Wandels", Wissenschaftszentrum … - 2012
unstructured bargaining gives an inefficient result. We find, however, that efficiency is achieved with fully homogenous countries …, and when countries have similar incomes and the union budget is small. Moreover, some redistribution arises endogenously …, entails a tradeoff between equality and efficiency. We also analyze alternative institutions and find that majority rule can …