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Bargaining, Coalitions and Local Expenditure

Author

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  • Partha Gangopadhyay

    (Faculty of Economics, Europa- Universität Viadrina, Frankfurt (Oder), Germany, gangopad@euv-frankfurt-o.de)

  • Shyam Nath

    (Department of Economics and Statistics, University of Mauritius, Reduit, Mauritius, snath@uom.ac.mu)

Abstract

We extend the literature on local expenditure determination by showing that bargaining and grand coalition seem to facilitate collective decision-making in an assembly of elected councillors. We demonstrate that the solution of the game turns on the principle of equal relative concession. Based on limited experimentation, we assess the performance of local governments and find that group dominance frustrates local expenditure efficiency in urban localities of India.

Suggested Citation

  • Partha Gangopadhyay & Shyam Nath, 2001. "Bargaining, Coalitions and Local Expenditure," Urban Studies, Urban Studies Journal Limited, vol. 38(13), pages 2379-2391, December.
    • Handle: RePEc:sae:urbstu:v:38:y:2001:i:13:p:2379-2391
    DOI: 10.1080/00420980120094560
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    References listed on IDEAS

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    Cited by:

    1. Serdar Yilmaz & Varsha Venugopal, 2008. "Local Government Discretion and Accountability in Ethiopia," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0838, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    2. Lankina, Tomila, 2008. "Cross-Cutting Literature Review on the Drivers of Local Council Accountability and Performance," MPRA Paper 12408, University Library of Munich, Germany.
    3. Jorge Martinez-Vazquez & Andrey Timofeev, 2011. "Decentralizing Egypt: Not Just Another Economic Reform," Chapters, in: Jorge Martinez-Vazquez & François Vaillancourt (ed.), Decentralization in Developing Countries, chapter 12, Edward Elgar Publishing.

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