Presents a complete and detailed constitutional framework applying the rational self-interest model and market mechanisms to intra and inter- governmental behaviour and collective decisions. In particular, the paper presents an enabling mechanism for the creation, adjustment and dissolution of governmental units and a mechanism for allocating tasks between units as well as a mechanism for reallocating funding. The emphasis is on practical enabling mechanisms rather than theoretical models.
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Paper provided by EconWPA in its series Public Economics with number
0402004.
Find related papers by JEL classification: H2 - Public Economics - - Taxation, Subsidies, and Revenue H4 - Public Economics - - Publicly Provided Goods H5 - Public Economics - - National Government Expenditures and Related Policies H7 - Public Economics - - State and Local Government; Intergovernmental Relations H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
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