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On the Endogenous Allocation of Decision Powers in Federal Structures

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dc.creator Lorz, Jens Oliver
dc.creator Willmann, Gerald
dc.date 2004
dc.date.accessioned 2013-10-16T06:56:38Z
dc.date.available 2013-10-16T06:56:38Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/17760
dc.identifier ppn:387375910
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/17760
dc.description This paper provides a political-economy explanation of the de- gree 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 policies. We show that the resulting degree of cen- tralization is suboptimally low. Voters strategically delegate to repre- sentatives who are averse to public spending and hence prefer decen- tralized decisions in order to reduce their region's cost share. When spill-overs are asymmetric, strategic delegation is stronger at the pe- riphery than at the center.
dc.language eng
dc.publisher Kiel Institute for the World Economy (IfW) Kiel
dc.relation Kieler Arbeitspapiere 1209
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject H77
dc.subject H11
dc.subject H41
dc.subject ddc:330
dc.subject Political Economy
dc.subject Fiscal Federalism
dc.subject Endogenous Centralization
dc.subject Constitutional Design
dc.subject Zentralstaat
dc.subject Föderalismus
dc.subject Finanzföderalismus
dc.subject Lokales öffentliches Gut
dc.subject Public Choice
dc.subject Spillover-Effekt
dc.subject Verfassung
dc.subject Theorie
dc.title On the Endogenous Allocation of Decision Powers in Federal Structures
dc.type doc-type:workingPaper


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