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Voting on devolution in a federal country with a bicameral national system

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  • Lisa Grazzini
  • Alessandro Petretto

Abstract

We analyse voting on devolution of responsibilities for the provision of public goods to local governments in a federal country, with a bicameral national legislature. We suppose that devolution is a scal reform which reduces federal public expenditure on a national public good, and simultaneously increases transfers which regions receive from the State via a tax-sharing mechanism. This allows regions to augment their aggregate expenditure on a local public good which substitutes the reduction in a national public one. We show the conditions under which each chamber of the national parliament votes separately in favour or against devolution, and the conditions prompting the Federal government to carry out or to drop such a reform.
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Suggested Citation

  • Lisa Grazzini & Alessandro Petretto, 2012. "Voting on devolution in a federal country with a bicameral national system," Economics of Governance, Springer, vol. 13(1), pages 51-72, March.
  • Handle: RePEc:spr:ecogov:v:13:y:2012:i:1:p:51-72
    DOI: 10.1007/s10101-011-0102-6
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    Cited by:

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    3. Grazzini Lisa & Petretto Alessandro, 2015. "Federalism with Bicameralism," German Economic Review, De Gruyter, vol. 16(2), pages 138-160, May.

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    More about this item

    Keywords

    Fiscal federalism; Devolution; Median voter; Bicameralism; H71; H77; H41;
    All these keywords.

    JEL classification:

    • H1 - Public Economics - - Structure and Scope of Government
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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