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A directly democratic and Federal Europe

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  • Bruno Frey

Abstract

This paper endeavors to take up the neglected aspects of federalism and direct democracy. It emphasizes the mutual dependence of the two for reaching the goals of efficiency and trust. Direct democracy is seen to preserve federalism, but even more importantly, federalism is taken to enable and to preserve effective direct democracy. Empirical evidence is adduced showing in particular that direct democracy leads to higher efficiency in the sense of lowering transaction costs. A proposal for a novel combination of federalism and direct democracy—which is called FOCJ (the acronym for “Functional Overlapping Competing Jurisdictions”)—is suggested for Europe. Copyright Kluwer Academic Publishers 1996

Suggested Citation

  • Bruno Frey, 1996. "A directly democratic and Federal Europe," Constitutional Political Economy, Springer, vol. 7(4), pages 267-279, December.
  • Handle: RePEc:kap:copoec:v:7:y:1996:i:4:p:267-279
    DOI: 10.1007/BF00119267
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    File URL: http://hdl.handle.net/10.1007/BF00119267
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    References listed on IDEAS

    as
    1. Nelson, Michael A, 1987. "Searching for Leviathan: Comment and Extension," American Economic Review, American Economic Association, vol. 77(1), pages 198-204, March.
    2. Steven Kelman, 1992. "Adversary and cooperationist institutions for conflict resolution in public policymaking," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 11(2), pages 178-206.
    3. Anthony Downs, 1957. "An Economic Theory of Political Action in a Democracy," Journal of Political Economy, University of Chicago Press, vol. 65, pages 135-135.
    4. Forbes, Kevin F & Zampelli, Ernest M, 1989. "Is Leviathan a Mythical Beast?," American Economic Review, American Economic Association, vol. 79(3), pages 568-577, June.
    5. Feld, Lars P & Savioz, Marcel R, 1997. "Direct Democracy Matters for Economic Performance: An Empirical Investigation," Kyklos, Wiley Blackwell, vol. 50(4), pages 507-538.
    6. repec:cup:apsrev:v:87:y:1993:i:01:p:1-11_09 is not listed on IDEAS
    7. Matsusaka, John G, 1995. "Fiscal Effects of the Voter Initiative: Evidence from the Last 30 Years," Journal of Political Economy, University of Chicago Press, vol. 103(3), pages 587-623, June.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    D7; H1; H7; PO;

    JEL classification:

    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • H1 - Public Economics - - Structure and Scope of Government
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations

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