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Lobbying and Rent-Seeking for Public Goods in a Fiscally Centralized System

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  • Cheikbossian, G.

Abstract

We analyze a centralized system as one in which a political authority finances by general taxation two local public goods each one associated with a particular region. Because individuals in the two regions have different preferences, they engage in rent-seeking activities to influence centralized policy-making in their preferred direction. Several results emerge from the analysis and in particular rent-seeking is shown to be increasing in taste heterogeneity and in the degree of spillovers.

Suggested Citation

  • Cheikbossian, G., 2004. "Lobbying and Rent-Seeking for Public Goods in a Fiscally Centralized System," Cahiers du LASER (LASER Working Papers) 2004.12, LASER (Laboratoire de Science Economique de Richter), Faculty of Economics, University of Montpellier 1.
  • Handle: RePEc:mop:lasrwp:2004.12
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    File URL: http://www.laser.univ-montp1.fr/Cahiers/cahier120304.pdf
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    References listed on IDEAS

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    1. Giancarlo Corsetti & Paolo Pesenti, 2001. "Welfare and Macroeconomic Interdependence," The Quarterly Journal of Economics, Oxford University Press, vol. 116(2), pages 421-445.
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    4. John Ferejohn, 1986. "Incumbent performance and electoral control," Public Choice, Springer, vol. 50(1), pages 5-25, January.
    5. Dani Rodrik, 1998. "Symposium on Globalization in Perspective: An Introduction," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 3-8, Fall.
    6. Banks, Jeffrey S. & Sundaram, Rangarajan K., 1998. "Optimal Retention in Agency Problems," Journal of Economic Theory, Elsevier, vol. 82(2), pages 293-323, October.
    7. Mukand, Sharun W., 2006. "Globalization and the `confidence game'," Journal of International Economics, Elsevier, vol. 70(2), pages 406-427, December.
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    Cited by:

    1. Feng Xie & David Levinson, 2009. "Governance choice on a serial network," Public Choice, Springer, vol. 141(1), pages 189-212, October.
    2. Cheikbossian, Guillaume, 2005. "Heterogenous Groups and Rent-Seeking for Public Goods," Cahiers du LASER (LASER Working Papers) 2005.16, LASER (Laboratoire de Science Economique de Richter), Faculty of Economics, University of Montpellier 1.
    3. Cheikbossian, Guillaume, 2008. "Heterogeneous groups and rent-seeking for public goods," European Journal of Political Economy, Elsevier, vol. 24(1), pages 133-150, March.

    More about this item

    Keywords

    (LOCAL) PUBLIC GOODS ; RENT-SEEKING ; GENERAL TAXATION ; SPILLOVERS;

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects

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