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Reviewing Oates' insights in a repeated game setting

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  • Oliver Koppel

Abstract

This paper analyzes the optimal assignment of public good policies to layers of a federal system in a repeated game setting. Under a centralized regime, public goods are financed jointly across regions, and a federal legislature decides on the regional quantities. Under a decentralized regime, public goods are financed locally, and governments play a non-cooperative provision game. We find that a centralized (decentralized) regime is more likely to provide the efficient public good policies in case spillovers are small (large). Copyright Springer-Verlag Berlin/Heidelberg 2005

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  • Oliver Koppel, 2005. "Reviewing Oates' insights in a repeated game setting," Economics of Governance, Springer, vol. 6(3), pages 229-243, November.
    • Handle: RePEc:spr:ecogov:v:6:y:2005:i:3:p:229-243
    DOI: 10.1007/s10101-004-0082-x
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    References listed on IDEAS

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    Cited by:

    1. Paulo Julio & Susana Peralta, 2008. "Endogenous spillovers in the trade-off between centralization and decentralization," Nova SBE Working Paper Series wp538, Universidade Nova de Lisboa, Nova School of Business and Economics.

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