EconPapers    
Economics at your fingertips  
 

Endogenous Institution in Decentralization

Iwan Azis ()

Peace Economics, Peace Science, and Public Policy, 2011, vol. 16, issue 2, 1-18

Abstract: Decentralization policy by itself is not a panacea for problems of accountability. A model is developed to exemplify a condition whereby given widespread 'capture’ in local elections, voices or people’s participation stands out as the most important factor that determines whether the decentralization system produces positive or negative local capture. The size of local budget and the initial welfare condition matter as well. The latter can also explicate the persistent gap between poor and rich regions observed in many countries. The welfare effect of the policy depends on the behavior and quality of local leader that govern the interplay of the above factors. The model can thus produce multiple equilibria. To the extent that the quality and behavior of local leader play a critical role, a three-player coordination game is constructed to reflect the hypothesis postulated by the theory of endogenous institution.

Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.2202/1554-8597.1230 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bpj:pepspp:v:16:y:2011:i:2:n:12

Ordering information: This journal article can be ordered from
https://www.degruyter.com/view/j/peps

DOI: 10.2202/1554-8597.1230

Access Statistics for this article

Peace Economics, Peace Science, and Public Policy is currently edited by Raul Caruso

More articles in Peace Economics, Peace Science, and Public Policy from De Gruyter
Bibliographic data for series maintained by Peter Golla ().

 
Page updated 2022-06-04
Handle: RePEc:bpj:pepspp:v:16:y:2011:i:2:n:12