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Horizontal competition among governments

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  • SALMON, Pierre

    ()
    (LEG - CNRS UMR 5118 - Université de Bourgogne)

Abstract

Governments situated on the same level of a multi-level governmental system compete with each other as well as with those placed higher or lower. This paper is concerned with horizontal competition only. It discusses both competition based on the mobility of agents (individuals, business firms, or factors) and competition related to the circulation of information. With regard to the first kind, it focuses on the capacity that governments keep to decide their policies and compete in spite of the mobility of agents. Some attention is also given to the implications of some non-standard assumptions about the underlying political set-up. The discussion of information-based competition includes that of "laboratory federalism" (whether decentralization favours innovation) and of "yardstick competition" (what are the effects of comparisons of governments' comparative performance across jurisdictions). Some questions pertaining to the relationship between the different forms of horizontal competition and to their normative and empirical dimensions are addressed briefly.

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Bibliographic Info

Paper provided by LEG, Laboratoire d'Economie et de Gestion, CNRS, Université de Bourgogne in its series LEG - Document de travail - Economie with number 2005-02.

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Length: 21 pages
Date of creation: Feb 2005
Date of revision:
Handle: RePEc:lat:legeco:2005-02

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Related research

Keywords: decentralization; federalism; intergovernmental competition; yardstick competition;

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References

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  1. Andrei Shleifer, 1985. "A Theory of Yardstick Competition," RAND Journal of Economics, The RAND Corporation, vol. 16(3), pages 319-327, Autumn.
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Citations

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Cited by:
  1. Geys, Benny & Vermeir, Jan, 2008. "Party cues and yardstick voting," European Journal of Political Economy, Elsevier, vol. 24(2), pages 470-477, June.
  2. M. Govinda Rao & Sen, Tapas K., 2011. "Federalism and fiscal reform in India," Working Papers 11/84, National Institute of Public Finance and Policy.
  3. Eloi Laurent & Jérôme Creel & Jacques Le Cacheux, 2007. "Politiques et performances macroéconomiques de la zone euro : institutions, incitations, stratégies," Sciences Po publications 2007-23, Sciences Po.
  4. Pierre Salmon, 2013. "Horizontal competition in multilevel governmental settings," Working Papers hal-00830876, HAL.
  5. Hills, Roderick, 2009. "Federalism and Public Choice," MPRA Paper 13625, University Library of Munich, Germany.
  6. repec:spo:wpecon:info:hdl:2441/2139 is not listed on IDEAS
  7. Pitsoulis, Athanassios & Siebel, Jens Peter, 2009. "Zur politischen Ökonomie von Defiziten und Kapitalsteuerwettbewerb," Discourses in Social Market Economy 2009-13, OrdnungsPolitisches Portal (OPO).
  8. Richard M. Bird, 2008. "Tax Assignment Revisited," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0805, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.

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