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Governance choice on a serial network

  • Feng Xie

    ()

  • David Levinson

    ()

This paper analyzes governance choice in a two-level federation in providing road infrastructure across jurisdictions. Two models are proposed to predict the choice of centralized or decentralized spending structure on a serial road network shared by two districts. While the first model considers simple Pigouvian behavior of governments, the second explicitly models political forces at both a local and central level. Both models led to the conclusions that the spending structure is chosen based on a satisfactory comprise between benefits and costs associated with alternative decision-making processes, and that governance choice may spontaneously shift as the infrastructure improves temporally.

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File URL: http://hdl.handle.net/10.1007/s11127-009-9448-5
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Article provided by Springer in its journal Public Choice.

Volume (Year): 141 (2009)
Issue (Month): 1 (October)
Pages: 189-212

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Handle: RePEc:kap:pubcho:v:141:y:2009:i:1:p:189-212
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