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Governance Choice on a Serial Network

David Matthew Levinson

University of Minnesota - Twin Cities

August 24, 2008

Public Choice, Vol. 141, pp. 189-212, 2009

This paper analyzes governance choice in a two-level federation in providing road infrastructure across jurisdictions. Two models are proposed to predict the choice of centralized or decentralized spending structure on a serial road network shared by two districts. While the first model considers simple Pigouvian behavior of governments, the second explicitly models political forces at both a local and central level. Both models led to the conclusions that the spending structure is chosen based on a satisfactory comprise between benefits and costs associated with alternative decision-making processes, and that governance choice may spontaneously shift as the infrastructure improves temporally.

Number of Pages in PDF File: 24

Keywords: Governance choice, Transportation, Infrastructure, Fiscal federalism

JEL Classification: R48, R40, H54

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Date posted: January 6, 2011 ; Last revised: January 22, 2011

Suggested Citation

Levinson, David Matthew, Governance Choice on a Serial Network (August 24, 2008). Public Choice, Vol. 141, pp. 189-212, 2009. Available at SSRN: http://ssrn.com/abstract=1735538

Contact Information

David Matthew Levinson (Contact Author)
University of Minnesota - Twin Cities ( email )
420 Delaware St. SE
Minneapolis, MN 55455
United States
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