Voting in federal elections for local public goods in a fiscally centralized economy
AbstractIn this paper we develop a probabilistic voting model of inter-gov\-ern\-men\-tal transfers to explain the distribution and size of local public goods. We find that: i) The parties’ political competition for votes induces the central government to provide regional transfers that lead to Pareto efficient local public goods with and without inter-regional spillovers. ii) The central government has political incentives to produce differentiated and uniform local public goods. Moreover, we provide a comparative analysis to study the influence of political competition, the extent of inter-regional spillovers of local public goods, and the distribution of the population in the economy on the size and distribution of local public spending.
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Bibliographic InfoArticle provided by El Colegio de México, Centro de Estudios Económicos in its journal Estudios Económicos.
Volume (Year): 26 (2011)
Issue (Month): 1 ()
inter-governmental transfers; size of government; electoral competition;
Find related papers by JEL classification:
- H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
- H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
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