VOTING IN FEDERAL ELECTIONS FOR LOCAL PUBLIC GOODS IN A FISCALLY CENTRALIZED ECONOMY

In this paper we develop a probabilistic voting model of inter-governmental transfers to explain the distribution and size of local public goods. We find that, i) The parties political competition for votes induces the central government to provide regional transfers that lead to Pareto efficient lo...

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Detalles Bibliográficos
Autores: Ikuho Kochi, Raúl A. Ponce Rodríguez
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2011
País:México
Institución:Universidad Autónoma de Ciudad Juárez
Repositorio:Redalyc-UACJ
OAI Identifier:oai:redalyc.org:59719742005
Acceso en línea:https://www.redalyc.org/articulo.oa?id=59719742005
Access Level:acceso abierto
Palabra clave:Economía y Finanzas
Inter
size of government
electoral competition
governmental transfers
Descripción
Sumario:In this paper we develop a probabilistic voting model of inter-governmental transfers to explain the distribution and size of local public goods. We find that, i) The parties political competition for votes induces the central government to provide regional transfers that lead to Pareto efficient local public goods with and without inter-regional spillovers. ii) The central government has political incentives to produce differentiated and uniform local public goods. Moreover, we provide a comparative analysis to study the influence of political competition, the extent of inter-regional spillovers of local public goods, and the distribution of the population in the economy on the size and distribution of local public spending.