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Beyond Federalism - Estimating and Explaining the Territorial Structure of Government

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  • Liesbet Hooghe
  • Gary Marks
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    Abstract

    This paper suggests that the basic distinction between federal and unitary government has limited as well as served our understanding of government. The notion that variation in the structure of government is a difference of kind rather than degree has straight-jacketed attempts to estimate the authority of intermediate government. One result has been the claim that a country’s footprint, not its population, is decisive for government. Analyzing data for 39 countries since 1950, and comparing our own findings with those of alternative measurements, we find evidence for the causal effect of population. This can be theorized in terms of a trade-off between responsiveness to soft information and per capita economies in public good provision.

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    File URL: http://userpage.fu-berlin.de/kfgeu/kfgwp/wpseries/WorkingPaperKFG_37.pdf
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    Bibliographic Info

    Paper provided by Free University Berlin in its series KFG Working Papers with number p0037.

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    Date of creation: 13 Apr 2012
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    Handle: RePEc:erp:kfgxxx:p0037

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    Web page: http://www.transformeurope.eu/

    Related research

    Keywords: integration theory; governance;

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    1. Panizza, Ugo, 1999. "On the determinants of fiscal centralization: Theory and evidence," Journal of Public Economics, Elsevier, vol. 74(1), pages 97-139, October.
    2. Shankar, Raja & Shah, Anwar, 2001. "Bridging the economic divide within nations : a scorecard on the performance of regional development policies in reducing regional income disparities," Policy Research Working Paper Series 2717, The World Bank.
    3. Boadway,Robin & Shah,Anwar, 2009. "Fiscal Federalism," Cambridge Books, Cambridge University Press, number 9780521518215, October.
    4. Alesina, Alberto & Perotti, Roberto & Spolaore, Enrico, 1995. "Togetheror separately? Issues on the costs and benefits of political and fiscal unions," European Economic Review, Elsevier, vol. 39(3-4), pages 751-758, April.
    5. Rigmar Osterkamp & Markus Eller, 2003. "Functional Decentralisation of Government Activity," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, vol. 1(3), pages 36-42, 02.
    6. Wallace E. Oates, 2006. "On the Theory and Practice of Fiscal Decentralization," Working Papers 2006-05, University of Kentucky, Institute for Federalism and Intergovernmental Relations.
    7. Arrow, Kenneth J, 1991. "Scale Returns in Communication and Elite Control of Organizations," Journal of Law, Economics and Organization, Oxford University Press, vol. 7(0), pages 1-6, Special I.
    8. Robert P. Inman, 2008. "Federalism's Values and the Value of Federalism," NBER Working Papers 13735, National Bureau of Economic Research, Inc.
    9. Schakel, Arjan H., 2008. "Validation of the Regional Authority Index," MPRA Paper 8972, University Library of Munich, Germany.
    10. Arzaghi, Mohammad & Henderson, J. Vernon, 2005. "Why countries are fiscally decentralizing," Journal of Public Economics, Elsevier, vol. 89(7), pages 1157-1189, July.
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