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Competition among different levels of government: the re-election problem

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Ponzano, Ferruccio ()

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Abstract

The aim of this paper is to analyse competition between two levels of government that want to maximise their tax revenues facing the problem of re-election. We assume that citizens have incomplete information about central and local public goods. Then, they are not able to choose a single efficient level of these two goods but they are able to choose a set of combinations. This choice represent the constraint faced by the levels of government. We develop a model starting from this assumption and three extensions to analyse the behaviour of two levels of government in different scenarios. We find that in each situation the equal sharing of the tax revenue is not the best solution for the governments.

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Paper provided by Department of Public Policy and Public Choice - POLIS in its series P.O.L.I.S. department's Working Papers with number 47.

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Length: 31 pages
Date of creation: Jul 2005
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Handle: RePEc:uca:ucapdv:47

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Find related papers by JEL classification:
D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Models of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior
H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Bissey, Marie-Edith & Canegallo, Claudia & Ortona, Guido & Scacciati, Francesco, 2003. "Competition vs. Cooperation. An Experimental Inquiry," P.O.L.I.S. department's Working Papers 37, Department of Public Policy and Public Choice - POLIS. [Downloadable!]
  2. Levaggi, Rosella & Zanola, Roberto, 2000. "The Flypaper Effect: Evidence from the Italian National Health System," P.O.L.I.S. department's Working Papers 10, Department of Public Policy and Public Choice - POLIS. [Downloadable!]
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  4. Montrucchio, Luigi & Privileggi, Fabio, 1999. "On Fragility of Bubbles in Equilibrium Asset Pricing Models of Lucas-Type," P.O.L.I.S. department's Working Papers 5, Department of Public Policy and Public Choice - POLIS. [Downloadable!]
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  5. Ortona, Guido, 2002. "Choosing the electoral system: why not simply the best one?," P.O.L.I.S. department's Working Papers 30, Department of Public Policy and Public Choice - POLIS. [Downloadable!]
  6. Locatelli-Biey, Marilena & Zanola, Roberto, 2000. "The Market for Sculptures: an Adjacent Year Regression Index," P.O.L.I.S. department's Working Papers 14, Department of Public Policy and Public Choice - POLIS. [Downloadable!]
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  12. Amisano, Franco, 2002. "La corruzione amministrativa in una burocrazia di tipo concorrenziale: modelli di analisi economica," P.O.L.I.S. department's Working Papers 29, Department of Public Policy and Public Choice - POLIS. [Downloadable!]
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  14. Marie-Edith Bissey & Mauro Carini & Guido Ortona, 2004. "ALEX3: a Simulation Program to Compare Electoral Systems," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 7. [Downloadable!]
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  15. Marchese, Carla & Privileggi, Fabio, 2001. "Who participates in tax amnesties? Self-selection of risk-averse taxpayers," P.O.L.I.S. department's Working Papers 21, Department of Public Policy and Public Choice - POLIS. [Downloadable!]
  16. Ponzano, Ferruccio, 2005. "Optimal provision of public goods under imperfect intergovernmental competition," P.O.L.I.S. department's Working Papers 44, Department of Public Policy and Public Choice - POLIS. [Downloadable!]
  17. Bernardi, Luigi & Fraschini, Angela, 2005. "Tax system and tax reforms in India," P.O.L.I.S. department's Working Papers 45, Department of Public Policy and Public Choice - POLIS. [Downloadable!]
  18. Cassone, Alberto & Marchese, Carla, 2001. "Einaudi e i servizi pubblici, ovvero come contrastare i monopolisti predoni e la burocrazia corrotta," P.O.L.I.S. department's Working Papers 17, Department of Public Policy and Public Choice - POLIS. [Downloadable!]
  19. Ottone, Stefania, 2004. "Transfers and Altruistic Punishments in Third Party Punishment Game Experiments," P.O.L.I.S. department's Working Papers 41, Department of Public Policy and Public Choice - POLIS. [Downloadable!]
  20. Ponzano, Ferruccio, 2004. "The allocation of the income tax among different levels of government: a theoretical solution," P.O.L.I.S. department's Working Papers 40, Department of Public Policy and Public Choice - POLIS. [Downloadable!]
  21. Cassone, Alberto & Marchese, Carla, 2001. "Should the death tax die? And should it leave an inheritance?," P.O.L.I.S. department's Working Papers 22, Department of Public Policy and Public Choice - POLIS. [Downloadable!]
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  23. Mario Ferrero, 2005. "Radicalization as a reaction to failure: An economic model of Islamic extremism," Public Choice, Springer, vol. 122(1), pages 199-220, January. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Marchese, Carla, 2006. "Rewarding the consumer for curbing the evasion of commodity taxes?," P.O.L.I.S. department's Working Papers 72, Department of Public Policy and Public Choice - POLIS. [Downloadable!]
  2. Ramello, Giovanni B. & Silva, Francesco, 2006. "Appropriating signs and meaning: The elusive economics of trademark," P.O.L.I.S. department's Working Papers 70, Department of Public Policy and Public Choice - POLIS. [Downloadable!]
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  3. Marchese, Carla & Privileggi, Fabio, 2007. "Increasing the efficiency of the 'Studi di Settore' might backfire," P.O.L.I.S. department's Working Papers 83, Department of Public Policy and Public Choice - POLIS. [Downloadable!]
  4. Ottone, Stefania & Ponzano, Ferruccio & Ricciuti, Roberto, 2007. "Simulating voting rule reforms for the Italian parliament. An economic perspective," P.O.L.I.S. department's Working Papers 88, Department of Public Policy and Public Choice - POLIS. [Downloadable!]
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  5. Cugno, Franco & Ottoz, Elisabetta, 2006. "Static inefficiency of compulsory licensing: Quantity vs. price competition," P.O.L.I.S. department's Working Papers 73, Department of Public Policy and Public Choice - POLIS. [Downloadable!]
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  6. Bissey, Marie-Edith & Ortona, Guido, 2007. "The program for the simulation of electoral systems ALEX4.1: what it does and how to use it," P.O.L.I.S. department's Working Papers 82, Department of Public Policy and Public Choice - POLIS. [Downloadable!]
  7. Nicita, Antonio & Ramello, Giovanni B., 2006. "Property, liability and market power: The antitrust side of copyright," P.O.L.I.S. department's Working Papers 75, Department of Public Policy and Public Choice - POLIS. [Downloadable!]
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  8. Ramello, Giovanni, 2006. "What's in a sign? Trademark law and enconomic theory," P.O.L.I.S. department's Working Papers 67, Department of Public Policy and Public Choice - POLIS. [Downloadable!]
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  9. Levaggi, Rosella & Montefiori, Marcello, 2005. "It takes three to tango: Soft budget constraint and cream skimming in the hospital care market," P.O.L.I.S. department's Working Papers 48, Department of Public Policy and Public Choice - POLIS. [Downloadable!]
  10. Ottone, Stefania, 2005. "Transfers and Altruistic Punishments in Solomon's Game experiments," P.O.L.I.S. department's Working Papers 50, Department of Public Policy and Public Choice - POLIS. [Downloadable!]
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This page was last updated on 2009-12-8.

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