Public Goods in a Voluntary Federal Union: Implications of a Participation Constraint

Thomas Aronsson (), Luca Micheletto and Tomas Sjögren
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Thomas Aronsson: Department of Economics, Umeå School of Business and Economics, Postal: Umeå University, S 901 87 Umeå, Sweden

No 850, Umeå Economic Studies from Umeå University, Department of Economics

Abstract: This paper re-examines the question of whether federal ex-post redistribution in terms of public funds leads to under-provision of public goods by adding the assumption that the member states are free to leave the economic federation. We show that federal ex-post redistribution no longer necessarily means under-provision of local and federal public goods.

Keywords: Public goods; fiscal federalism; ex-post redistribution (search for similar items in EconPapers)
JEL-codes: D61 H41 H77 (search for similar items in EconPapers)
Pages: 7 pages
Date: 2012-10-18
New Economics Papers: this item is included in nep-pbe and nep-pub
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Citations: View citations in EconPapers (2)

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Related works:
Working Paper: Public Goods in a Voluntary Federal Union: Implications of a Participation Constraint (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:umnees:0850

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