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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Detalhes bibliográficos
Autores: Kochi, Ikuho, Ponce Rodríguez, Raúl . A
Formato: artículo
Estado:Versión publicada
Fecha de publicación:2011
País:México
Recursos:EL COLEGIO DE MÉXICO
Repositorio:Estudios Económicos de El Colegio de México
Idioma:inglés
OAI Identifier:oai:oai.estudioseconomicos.colmex.mx:article/102
Acesso em linha:https://estudioseconomicos.colmex.mx/index.php/economicos/article/view/102
Access Level:acceso abierto
Palavra-chave:inter-governmental transfers
size of government
electoral competition
H77
H41
H50
transferencias inter-gubernamentales
tamaño del gobierno
competencia electoral
Descrição
Resumo: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.