We revisit Gradstein's (2004) model of bargaining between two regions under representative democracy. Although our analysis is built on his model, we obtain results different from his. We show that if a minority region reaps sufficiently large benefits from a public good and its population is...

This paper studies the efficiency of decentralized leadership in federations where selfish regional governments provide regional and federal public goods and the benevolent central government implements interregional earmarked and income transfers. Without residential mobility, unlimited...

We examine whether the strategic delegation problem in interregional negotiations can be solved by a governmental policy. It is well known that when an interregional negotiation is delegated to representatives, each region elects its representative strategically, resulting in inefficient...

Under the 'new normal' in the labor market, individuals can work remotely or in person, a hybrid work mode that became ubiquitous during the pandemic. This paper studies the efficiency of decentralized leadership in federations in which hybrid work is the modus operandi. Self-interested regional...

This paper surveys the recent literature on the political economy of the formation of international environmental agreements. The survey covers theoretical modelling approaches and empirical studies including experimental work. Central to our survey is the question how the political process...