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Distributional Conflict and Jurisdictional Organization

Author

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  • Wärneryd, Karl

    (Department of Economics)

Abstract

The paper explores the implications for explaining the endogenous formation of jurisdictions of modelling the political process as a costly fight to acquire shares of the GNP pie. It is shown, in particular, that a system of federalism is especially significant in ameliorating distributional competition and conflict. Less resources are spent in aggregate on appropriative activities under a hierarchical system of federalism than in a unified jurisdiction with a single central government. Furthermore, if mobility is costless, then a form of federalism may be preferred by all agents even if it destroys resources.

Suggested Citation

  • Wärneryd, Karl, 1997. "Distributional Conflict and Jurisdictional Organization," SSE/EFI Working Paper Series in Economics and Finance 173, Stockholm School of Economics.
    • Handle: RePEc:hhs:hastef:0173
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    Keywords

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    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects

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