The traditional theory for fiscal federalism assumes that the lower tier is more efficient in producing local public goods because of information asymmetry, while on the finance side Central Government might be more efficient in raising resources that will then be distributed through...

Pork barrel spending is typically attributed to the strategic behavior of political elites hoping to be electorally rewarded by voters residing in their districts. Such behavior is expected to depend on the incentives imposed by the electoral system. We estimate the causal effect of local...

In this chapter, we assess recent contributions of computational models to the study of politics. We focus primarily on agent-based models developed by economists and political scientists. These models address collective action problems, questions related to institutional design and performance,...

The paper presents a political agency model that observes how budgetary decisions on public good production affect the prospects of holding office for an incumbent political party. A simple budgetary function is broadened to include other expenditures such as public sector wages and social...

We investigate the geographical concentration of representatives and the distribution of fiscal transfers both theoretically and empirically. We develop a model which predicts that funds to an area are positively correlated with the number of representatives residing in that area. Our empirical...

This paper evaluates the effects of encouraging the selection of local politicians in India via community-based consensus, as opposed to a secret ballot election. While secret ballot elections prevent vote capture by guaranteeing voter anonymity, consensus-based elections may improve welfare by...

Many countries have adopted decentralization policies in order to strengthen democratic governance. Nevertheless, empirical literature on whether decentralization actually strengthens democratic governance is relatively limited when compared to empirical literature on the impact of...

In this paper, the authors examine the impact of municipal budget policy on the percentage of votes for the incumbent majority parties in subsequent elections. They contribute to the academic literature by examining the combined influence of taxes, expenditures and debt. Based on data for...

Although pre-electoral political manipulation of the budget --- the political budget cycle (PBC) --- has been long investigated by scholars, empirical findings are mixed at best. This is partly because of the non-random nature of election timing. There also exist ongoing debates over how the...