The assignment of powers in Federal and Unitary States
Lockwood, Ben (2000) The assignment of powers in Federal and Unitary States. Working Paper. University of Warwick, Department of Economics, Coventry.
WRAP_Lockwood_twerp569.pdf - Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader
Official URL: http://www2.warwick.ac.uk/fac/soc/economics/resear...
This paper studies a model where the power to set policy (a choice of project) may be assigned to central or regional government via either a federal or unitary referendum (constitutional rule, CR). The benefit of central provision is an economy of scale, while the cost is political inefficiency. The relationship between federal and unitary CRs is characterized in the asymptotic case as the number of regions becomes large, under the assumption that the median project benefit in any region is a random draw from a fixed distribution, G. Under some symmetry assumptions, the relationship depends only on the shape of G, not on how willingnesses to pay are distributed within regions. The relationship to Cremer and Palfrey's (1996) "principle of aggregation" is established. Asymptotic results on the efficiency of the two CRs are also provided.
|Item Type:||Working or Discussion Paper (Working Paper)|
|Subjects:||J Political Science > JA Political science (General)|
|Divisions:||Faculty of Social Sciences > Economics|
|Library of Congress Subject Headings (LCSH):||Decentralization in government, Intergovernmental fiscal relations, Referendum, Constitutional law|
|Series Name:||Warwick economic research papers|
|Publisher:||University of Warwick, Department of Economics|
|Place of Publication:||Coventry|
|Number of Pages:||33|
|Status:||Not Peer Reviewed|
|Access rights to Published version:||Open Access|
|References:||Baron, D.P, “Majoritarian incentives, pork barrel programs, and procedural control”, American Journal of Political Science 35 (1991), 57-90 Baron, D.P, and J.Ferejohn, “Bargaining in legislatures”, American Political Science Review, 83 (1989), 1181-1206 Besley,T, and S.Coate, Quarterly Journal of Economics 62, (1997), 84-114 Besley, T. and S.Coate(1998), \The Architecture of Government; Centralized versus Decentralized Provision of Public Goods”, unpublished paper Bird,R.M. “Threading the …scal labyrinth: some issues in …scal decentralization”, National Tax Journal, 46, (1993), 207-227 Bolton,P. and G.Roland, “The break-up of nations: a political economy analysis”, CEPR Discussion Paper No. 1225, 1995 Buchanan,J.M., “A contractarian paradigm for applying economic theory”, American Economic Review, 65 (Papers and Proceedings), (1975), 225-230 Buchanan,J.M., “The constitution of economic policy”, American Economic Review, 77, (1987), 243-250 Buchanan,J.M., “Contractarian political economy and constitutional interpretation”, American Economic Review, 78 (Papers and Proceedings, 1978), 135-139 Caillaud, B., B.Julien, and P.Picard, “National vs. European incentive policies: bargaining, information, and coordination”, European Economic Review, 40 (1996), 91-111 Cremer,J and Palfrey “In or out? Centralization by Majority vote”, European Economic Review, 40 (1996), 43-60 Cremer,J and Palfrey “Political Confederation”, American Political Science Review, 93 (1999), 69-83 Curtis,M.(1997),Western European Government and Politics, (Longman, 1997) Dixit,A. The Making of Economic Policy, (Cambridge, MIT Press, 1996) J.Ferejohn, M.Fiorina, and R.D.McKelvey, “Sophisticated voting and agenda independence in the distributive politics setting”, American Journal of Political Science (1997) 31, 169-194 Gilbert,G., and P.Picard, “Incentives and the optimal size of local jurisdictions”, European Economic Review, 40 (1996), 19-41 Klibano¤,P. and M.Poitevin “A theory of (de)centralization”, unpublished paper, University of Montreal, 1996 Lockwood,B (1998) “Distributive politics and the bene…ts of decentralisation”, Warwick Research Paper in Economics 513, University of Warwick Oates,W., Fiscal Federalism (Harcourt, Brace, Jovanovitch, 1972) Osborne,M.J. and A.Slivinski, “A model of political competition with citizen candidates”, Quarterly Journal of Economics 61 (1996), 65-96 Persson,T. (1998), “Economic policy and special interest politics”, Economic Journal 108, 529-543 Rothschild,M. and J.E.Stiglitz,“Increasing risk I: a de…nition”, Journal of Economic Theory (1970), 225-243 Wheare,K.C. Federal Government, (Oxford, Oxford University Press, 1963)|
Actions (login required)