Distributive Politics and the Benefits of Decentralisation

CSGR Working Paper No. 10/98

37 Pages Posted: 20 Mar 2000

See all articles by Ben Lockwood

Ben Lockwood

University of Warwick - Department of Economics; Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute)

Date Written: August 1998

Abstract

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.

JEL Classification: H41, H70, H72

Suggested Citation

Lockwood, Ben, Distributive Politics and the Benefits of Decentralisation (August 1998). CSGR Working Paper No. 10/98, Available at SSRN: https://ssrn.com/abstract=146966 or http://dx.doi.org/10.2139/ssrn.146966

Ben Lockwood (Contact Author)

University of Warwick - Department of Economics ( email )

Coventry CV4 7AL
United Kingdom
+44 24 7652 8906 (Phone)
+44 24 7657 2548 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

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