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Distributive Politics and the Benefits of Decentralization

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Author Info
Lockwood, B.

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Abstract

This paper integrates the distributive politics literature with the literature on decentralization by incorporating inter-regional project externalities into a standard model of distributive policy. A key finding is that the degree of uniformity (or "universalism") of the provision of regional projects is endogenous, and depends on the strength of the externality. The welfare benefits of decentralization, and the performance of "constitutional rules" (such as majority voting) which may be used to choose between decentralization and centralization, are then discussed in this framework.

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File URL: http://www2.warwick.ac.uk/fac/soc/economics/research/papers/porknew.pdf
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Publisher Info
Paper provided by University of Warwick, Department of Economics in its series The Warwick Economics Research Paper Series (TWERPS) with number 513.

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Length: 30 pages
Date of creation: 1998
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Handle: RePEc:wrk:warwec:513

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Related research
Keywords: DECENTRALIZATION PUBLIC POLICY INCOME REDISTRIBUTION

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Find related papers by JEL classification:
H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
D3 - Microeconomics - - Distribution

Cited by:
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  1. Ana María Iregui, 2002. "Decentralised Provision Of Quasi-Private Goods: The Case Of Colombia," BORRADORES DE ECONOMIA 002251, BANCO DE LA REPÚBLICA. [Downloadable!]
    Other versions:
  2. Brian Knight, 2004. "Legislative Representation, Bargaining Power, and the Distribution of Federal Funds: Evidence from the U.S. Senate," NBER Working Papers 10385, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Redoano, Michela, 2003. "Does Centralisation Affect The Number And Size Of Lobbies?," The Warwick Economics Research Paper Series (TWERPS) 674, University of Warwick, Department of Economics. [Downloadable!]
    Other versions:
  4. Mariano Tommasi & Federico Weinschelbaum, 2000. "A Principal-Agent Building Block for the Study of Decentralization and Integration," Econometric Society World Congress 2000 Contributed Papers 0457, Econometric Society. [Downloadable!]
  5. Brian Knight, 2004. "Bargaining in Legislatures: An Empirical Investigation," NBER Working Papers 10530, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Gradstein, Mark, 2000. "The Political Economy of Sustainable Federations," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
  7. Massimo Bordignon & Paolo Manasse & Guido Tabellini, 2001. "Optimal Regional Redistribution under Asymmetric Information," American Economic Review, American Economic Association, vol. 91(3), pages 709-723, June. [Downloadable!] (restricted)
    Other versions:
  8. Brian Knight, 2003. "Parochial Interests and the Centralized Provision of Local Public Goods: Evidence from Congressional Voting on Transportation Projects," NBER Working Papers 9748, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  9. B. Douglas Bernheim & Antonio Rangel & Luis Rayo, 2002. "Democratic Policy Making with Real-Time Agenda Setting: Part 1," NBER Working Papers 8973, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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