Government and Cities: Contests and the Decentralization of Decision Making
AbstractGovernments do not have perfect information regarding the priorities and the needs of different groups in the economy. This lack of knowledge opens the door for different groups to lobby the government in order to receive the government’s support. We set up a model of hierarchical contests and compare the implications of a centralized allocation process with a decentralized allocation process. We show the potential existence of a poverty trap as a result of fiscal federalism.
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Bibliographic InfoPaper provided by Rutgers University, Department of Economics in its series Departmental Working Papers with number 200215.
Date of creation: 16 Jul 2002
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Economic-Models-of-the-Political-Process; fiscal federalism; Intergovernmental-Relations; rent-seeking;
Other versions of this item:
- Epstein, Gil S & Gang, Ira, 2002. "Government and Cities: Contests and the Decentralization of Decision Making," CEPR Discussion Papers 3585, C.E.P.R. Discussion Papers.
- Epstein, Gil S. & Gang, Ira N., 2002. "Government and Cities: Contests and the Decentralization of Decision Making," IZA Discussion Papers 547, Institute for the Study of Labor (IZA).
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
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