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Portfolio Allocation under Decentralization

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  • Albert Falcó-Gimeno

Abstract

Decentralization shapes the way policy authority is shared between the national and regional levels and that, I argue, will have consequences for government formation. In particular, I contend that the allocation of portfolios in regional coalition governments will be affected by the degree of decentralization of each policy. To analyze this relationship I exploit the cross-time, cross-regional, and cross-policy variation of the process of competence devolution to the Spanish Autonomous Communities between 1980 and 2010. I find that, as expected, an increase in the competences managed by the region in a given policy jurisdiction makes the related portfolio more attractive to all coalition parties, although the effect seems to be particularly significant in economically strong and fast-track regions. Copyright 2014, Oxford University Press.

Suggested Citation

  • Albert Falcó-Gimeno, 2014. "Portfolio Allocation under Decentralization," Publius: The Journal of Federalism, CSF Associates Inc., vol. 44(1), pages 205-225, January.
    • Handle: RePEc:oup:publus:v:44:y:2014:i:1:p:205-225
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    File URL: http://hdl.handle.net/10.1093/publius/pjt027
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