eprintid: 21653 rev_number: 17 eprint_status: archive userid: 1482 importid: 105 dir: disk0/00/02/16/53 datestamp: 2016-05-13 12:57:17 lastmod: 2021-04-02 15:53:28 status_changed: 2016-06-30 10:47:17 type: monograph metadata_visibility: no_search creators_name: Cheikbossian, Guillaume creators_idrefppn: 066955815 title: The Political Economy of (De)centralization with Complementary Public Goods ispublished: pub subjects: subjects_ECO abstract: This paper provides a political economy analysis of (de)centralization when local public goods -- with spillovers effects -- can be substitutes or complements. Depending on the degree of complementarity between local public goods, median voters strategically delegate policy to either `conservative' or to `liberal' representatives under decentralized decision-making. In the first case, it accentuates the free-rider problem in public good provision, while it mitigates it in the second case. Under centralized decision-making, the process of strategic delegation results in either too low or too much public spending, with the outcome crucially depending on the sharing of the costs of local public spending relative to the size of the spillover effects. Hence, with a common financing rule, centralization is welfare improving if and only if both public good externalities and the degree of complementarity between local public goods are both relatively large. date: 2016-05 date_type: published publisher: TSE Working Paper official_url: http://tse-fr.eu/pub/30433 faculty: tse divisions: tse keywords: (De)centralization keywords: Local Public Goods keywords: Complements keywords: Strategic Delegation keywords: Spillovers language: en has_fulltext: TRUE subjectsJEL: JEL_D72 subjectsJEL: JEL_H41 subjectsJEL: JEL_H77 view_date_year: 2016 full_text_status: public monograph_type: working_paper series: TSE Working Paper volume: 16-644 place_of_pub: Toulouse pages: 49 institution: Université Toulouse 1 Capitole department: Toulouse school of economics book_title: TSE Working Paper oai_identifier: oai:tse-fr.eu:30433 harvester_local_overwrite: department harvester_local_overwrite: faculty harvester_local_overwrite: place_of_pub harvester_local_overwrite: pages harvester_local_overwrite: institution harvester_local_overwrite: id_number harvester_local_overwrite: creators_idrefppn oai_lastmod: 2016-06-27T07:51:09Z oai_set: tse site: ut1 citation: Cheikbossian, Guillaume (2016) The Political Economy of (De)centralization with Complementary Public Goods. TSE Working Paper, n. 16-644, Toulouse document_url: https://publications.ut-capitole.fr/id/eprint/21653/1/cheikbossian_21653.pdf