We propose and test a positive model of fiscal federalism in which centralization is less likely to occur in … jurisdictions with referendum decisions on policy centralization. Citizens choose centralization of public spending and revenue in … representative democracy, centralization is inefficiently high because representatives can extract political rents by policy …

federalism in which centralization is less likely to occur where budget referendums are possible. The reason for this result is … that budget referendums reduce the extent to which pro-centralization regions can commit to a low level of spending … delegating the centralization choice to elected policymakers. In addition, it reduces the ability of higher level policy …

) which may be used to choose between decentralization and centralization, are then discussed in this framework …This paper integrates the distributive politics literature with the literature on decentralization by incorporating … externality. The welfare benefits of decentralization, and the performance of "constitutional rules" (such as majority voting …

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 …-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 …-specific public goods out of two complementary district-specific inputs. We compare equilibria in non-cooperative decentralization and …

voting, (i) centralization can welfare-dominate decentralization even if there are no externalities and regions are … heterogenous; (ii) decentralization can welfare-dominate centralization even if there are positive externalities and regions are …This paper revisits the fiscal quot;decentralization theoremquot;, by relaxing the role of the assumption that …