Selective decentralized leadership

Emilson Silva

Journal of Urban Economics, 2014, vol. 83, issue C, 1-5

Abstract: This paper examines the efficiency of decentralized leadership where regional governments contribute to the provision of multiple regional and national public goods. Unlimited decentralized leadership is inefficient because regional governments have incentives to overspend resources in the provision of regional public goods. Selective decentralized leadership is socially efficient if commitments are restricted to regional contributions to national public goods, since in this case regional governments face “correct” incentives when they contribute to national and regional public goods. The model applies to different types of national public goods. Aggregation technologies include the orthodox summation, and nonlinear and asymmetric transformation functions.

Keywords: Policy commitments; Multiple public goods; Federations; Decentralized leadership (search for similar items in EconPapers)
JEL-codes: C72 D62 D72 D78 H41 H77 R5 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:juecon:v:83:y:2014:i:c:p:1-5

DOI: 10.1016/j.jue.2014.06.004

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