The Impact of Referendums on the Centralisation of Public Goods Provision: A Political Economy Approach
The paper compares decision-making on the centralisation of public goods provision in the presence of regional externalities under representative and direct democratic institutions. A model with two regions, two public goods and regional spillovers is developed in which uncertainty over the true preferences of candidates makes strategic delegation impossible. Instead, it is shown that the existence of rent extraction by delegates alone suffices to make cooperative centralisation more likely through representative democracy. In the non-cooperative case, the more extensive possibilities for institutional design under representative democracy increase the likelihood of centralisation. Direct democracy may thus be interpreted as a federalism-preserving institution.
|Date of creation:||2006|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +49 (89) 9224-0
Fax: +49 (89) 985369
Web page: http://www.cesifo.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Robert A.J. Dur & Hein J. Roelfsema, 2002.
"Why does Centralisation fail to internalise Policy Externalities?,"
Tinbergen Institute Discussion Papers
02-056/3, Tinbergen Institute, revised 11 Nov 2003.
- Robert Dur & Hein Roelfsema, 2005. "Why does centralisation fail to internalise policy externalities?," Public Choice, Springer, vol. 122(3), pages 395-416, March.
- R Dur & H.J. Roelfsema, 2004. "Why Does Centralisation Fail to Internalise Policy Externalities?," Working Papers 04-09, Utrecht School of Economics.
- Grandmont, Jean-Michel, 1978. "Intermediate Preferences and the Majority Rule," Econometrica, Econometric Society, vol. 46(2), pages 317-30, March.
- Alesina, Alberto, 1988. "Credibility and Policy Convergence in a Two-Party System with Rational Voters," American Economic Review, American Economic Association, vol. 78(4), pages 796-805, September.
- Davis, Otto A & DeGroot, Morris H & Hinich, Melvin J, 1972. "Social Preference Orderings and Majority Rule," Econometrica, Econometric Society, vol. 40(1), pages 147-57, January.
- Ellingsen, Tore, 1998. "Externalities vs internalities: a model of political integration," Journal of Public Economics, Elsevier, vol. 68(2), pages 251-268, May.
- Alesina, Alberto F & Angeloni, Ignazio & Etro, Federico, 2003.
CEPR Discussion Papers
3913, C.E.P.R. Discussion Papers.
- Etro, Federico & Ageloni, Ignazio & Alesina, Alberto, 2005. "International Unions," Scholarly Articles 4553008, Harvard University Department of Economics.
- Alberto Alesina & Ignazio Angeloni & Federico Etro, 2003. "International Unions," Harvard Institute of Economic Research Working Papers 2001, Harvard - Institute of Economic Research.
- Thomas Gilligan & John Matsusaka, 2006. "Public choice principles of redistricting," Public Choice, Springer, vol. 129(3), pages 381-398, December.
- Gilligan, Thomas W & Matsusaka, John G, 1999. " Structural Constraints on Partisan Bias under the Efficient Gerrymander," Public Choice, Springer, vol. 100(1-2), pages 65-84, July.
- repec:oup:qjecon:v:111:y:1996:i:1:p:65-96 is not listed on IDEAS
- Matsusaka, John G & McCarty, Nolan M, 2001. "Political Resource Allocation: Benefits and Costs of Voter Initiatives," Journal of Law, Economics and Organization, Oxford University Press, vol. 17(2), pages 413-48, October.
- Brennan,Geoffrey & Buchanan,James M., 1980.
"The Power to Tax,"
Cambridge University Press, number 9780521233293.
- Redoano, Michela & Scharf, Kimberly A., 2004.
"The political economy of policy centralization: direct versus representative democracy,"
Journal of Public Economics,
Elsevier, vol. 88(3-4), pages 799-817, March.
- Redoano, Michela & Scharf, Kimberley, 2002. "The Political Economy of Policy Centralization: Direct Versus Representative Democracy," CEPR Discussion Papers 3631, C.E.P.R. Discussion Papers.
- Michela Redoano & Kimberley Ann Scharf, 2001. "The Political Economy of Policy Centralization: Direct Versus Representative Democracy," CESifo Working Paper Series 602, CESifo Group Munich.
- repec:oup:qjecon:v:112:y:1997:i:4:p:1027-56 is not listed on IDEAS
- Charles Blankart, 2000. "The Process of Government Centralization: A Constitutional View," Constitutional Political Economy, Springer, vol. 11(1), pages 27-39, March.
- Lorz, Jens Oliver & Willmann, Gerald, 2004.
"On the Endogenous Allocation of Decision Powers in Federal Structures,"
Center for European, Governance and Economic Development Research Discussion Papers
25, University of Goettingen, Department of Economics.
- Lorz, Oliver & Willmann, Gerald, 2005. "On the endogenous allocation of decision powers in federal structures," Journal of Urban Economics, Elsevier, vol. 57(2), pages 242-257, March.
- Oliver Lorz & Gerald Willmann, 2004. "On the Endogenous Allocation of Decision Powers in Federal Structures," Kiel Working Papers 1209, Kiel Institute for the World Economy.
- repec:oup:qjecon:v:112:y:1997:i:1:p:85-114 is not listed on IDEAS
- Yingyi Qian & Barry R. Weingast, 1997.
"Federalism as a Commitment to Preserving Market Incentives,"
97042, Stanford University, Department of Economics.
- Yingyi Qian & Barry R. Weingast, 1997. "Federalism as a Commitment to Reserving Market Incentives," Journal of Economic Perspectives, American Economic Association, vol. 11(4), pages 83-92, Fall.
When requesting a correction, please mention this item's handle: RePEc:ces:ceswps:_1803. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Julio Saavedra)
If references are entirely missing, you can add them using this form.