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The distinct characteristic in James Buchanan’s thinking about federalism in contrast to the traditional theory of … fiscal federalism is his view about fiscal competition. In this paper, it is demonstrated that this thinking went through … federalism literature and concerned with equity and efficiency issues. In the Leviathan approach starting from the midseventies …
Persistent link: https://www.econbiz.de/10010384955
To what extent does the federal structure of policymaking in the United States mitigate or exacerbate national political conflict? We develop a model of two-level governance in a federal system in the presence of interstate preference heterogeneity and cross-state externalities. The key...
Persistent link: https://www.econbiz.de/10012946428
Prevailing accounts of the efficiency of subsidies for the nonprofit sector presume that the only alternative source of public goods is a single sovereign, controlled by a single median voter. Tiebout sorting, however, also provides citizens with alternative bundles of public goods. When these...
Persistent link: https://www.econbiz.de/10014181164
Decentralization reforms typically lead to the coexistence of multiple tiers of government in a given policy area. To analyze the welfare effects of such partial decentralization, this paper develops a political agency model in which two levels of government are involved in public good provision...
Persistent link: https://www.econbiz.de/10014201038
The paper considers governments' public procurement decision as a way of influencing industry structure. In a federation in which capital is mobile and capital taxation is harmonized, a home bias in public procurement can potentially be explained as an effort to increase the capital intensity of...
Persistent link: https://www.econbiz.de/10013428266
Persistent link: https://www.econbiz.de/10013430405
This paper analyzes the relationship between the size of an economic union and the degree of policy centralization. We consider a political economy setting in which elected representatives bargain about the degree of centralization within the union. In our model strategic delegation affects the...
Persistent link: https://www.econbiz.de/10012754994
This paper provides a political-economy explanation of the degree of centralization in economic policy making. To determine which policies are to be centralized, regions select representatives who then negotiate the degree of centralization and the regional cost shares of centrally decided...
Persistent link: https://www.econbiz.de/10012755787
This paper develops a positive theory of overlapping income taxation in a federation of states. The analysis provides a …
Persistent link: https://www.econbiz.de/10014107338
We develop a political economy model of intergovernmental transfers. Vertical fiscal balance occurs in a federation when the ratio of the marginal benefit of the public services provided by the federal and provincial governments is equal to their relative marginal costs of production. With...
Persistent link: https://www.econbiz.de/10013074381