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Electoral Competition and Incentives to Local Public Good Provision

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  • M. Magnani

Abstract

Local public good provision from different government levels is subject to many bias coming from the political process; incentives indeed, vary with the size of the beneficiaries’ set and costs may affect the results of political competition by reducing total resources available for redistribution. Present work represents a first attempt to look at these issues together; indeed, it considers the situation where politicians have a finite budget to use both for redistributive policies and for the provision of a public good that affects the utility of a fraction of the electorate. In this setting it is not enough that benefits balance costs, in order for the public good to be implemented; the required level of efficiency moreover, is influenced by benefits concentration. If those interested in the public good are less than half of the electorate, concentration increases the efficiency threshold; on the contrary if they amount for more, benefits concentration decreases the required level of efficiency. Classification-JEL: D72, H41

Suggested Citation

  • M. Magnani, 2006. "Electoral Competition and Incentives to Local Public Good Provision," Economics Department Working Papers 2006-EP13, Department of Economics, Parma University (Italy).
  • Handle: RePEc:par:dipeco:2006-ep13
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    References listed on IDEAS

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    More about this item

    Keywords

    social security; turnover on the labor market; political equilibria; employment protection; retirement age;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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