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Electoral outcomes and local public goods provision with ex post interregional transfer

Author

Listed:
  • Nobuo Akai

    (Osaka University)

  • Takahiro Watanabe

    (Kwansei Gakuin University)

Abstract

This paper analyzes the effect of ex post interregional transfer on electoral outcomes and the provision of local public goods with spillovers. The central government does not have a pre-commitment ability, and the interregional transfer is optimally designed ex post. Our results show that under ex post interregional transfers, electoral outcome are distorted and inefficiencies are created in the local public goods provision. The commitment environment affects the direction (whether it is too small or too large) of this distortion, the degree of which depends on the degree of the spillover effect.

Suggested Citation

  • Nobuo Akai & Takahiro Watanabe, 2023. "Electoral outcomes and local public goods provision with ex post interregional transfer," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 30(6), pages 1633-1655, December.
    • Handle: RePEc:kap:itaxpf:v:30:y:2023:i:6:d:10.1007_s10797-022-09754-w
    DOI: 10.1007/s10797-022-09754-w
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    References listed on IDEAS

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    More about this item

    Keywords

    Election; Decentralized leadership; Interregional transfer;
    All these keywords.

    JEL classification:

    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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