Distributive Politics and the Benefits of Decentralisation
This paper integrates the distributive politics literature with the literature on decentralization by incorporating inter-regional project externalities into a standard model of distributive policy. A key finding is that the degree of uniformity (or ``universalism'') of the provision of regional projects is endogenous, and depends on the strength of the externality. The welfare benefits of decentralization, and the performance of ``constitutional rules'' (such as majority voting) which may be used to choose between decentralization and centralization, are then discussed in this framework.
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|Date of creation:||Aug 1998|
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