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Lobbying and Rent-Seeking for Public Goods in a Fiscally Centralized System

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  • Cheikbossian, G.

Abstract

We analyze a centralized system as one in which a political authority finances by general taxation two local public goods each one associated with a particular region. Because individuals in the two regions have different preferences, they engage in rent-seeking activities to influence centralized policy-making in their preferred direction. Several results emerge from the analysis and in particular rent-seeking is shown to be increasing in taste heterogeneity and in the degree of spillovers.

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File URL: http://www.laser.univ-montp1.fr/Cahiers/cahier120304.pdf
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Bibliographic Info

Paper provided by LASER (Laboratoire de Science Economique de Richter), Faculty of Economics, University of Montpellier 1 in its series Cahiers du LASER (LASER Working Papers) with number 2004.12.

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Length: 26 pages
Date of creation: 2004
Date of revision:
Handle: RePEc:mop:lasrwp:2004.12

Contact details of provider:
Postal: LASER, Faculté d'Economie, Avenue Raymond Dugrand, CS 79606, 34960 MONTPELLIER Cedex 2, France
Web page: http://www.laser.univ-montp1.fr
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Keywords: (LOCAL) PUBLIC GOODS ; RENT-SEEKING ; GENERAL TAXATION ; SPILLOVERS;

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Cited by:
  1. Cheikbossian, Guillaume, 2005. "Heterogenous Groups and Rent-Seeking for Public Goods," Cahiers du LASER (LASER Working Papers) 2005.16, LASER (Laboratoire de Science Economique de Richter), Faculty of Economics, University of Montpellier 1.
  2. Feng Xie & David Levinson, 2009. "Governance choice on a serial network," Public Choice, Springer, vol. 141(1), pages 189-212, October.

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