A note on public goods in a decentralized fiscal union: Implications of a participation constraint

Thomas Aronsson, Luca Micheletto and Tomas Sjögren

Journal of Urban Economics, 2014, vol. 84, issue C, 1-8

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 when member states may leave the economic federation. We show that federal ex-post redistribution under a binding participation constraint does not necessarily mean under-provision of local and federal public goods.

Keywords: Public goods; Fiscal federalism; Ex-post redistribution; Participation constraint (search for similar items in EconPapers)
JEL-codes: D61 H41 H77 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:juecon:v:84:y:2014:i:c:p:1-8

DOI: 10.1016/j.jue.2014.08.005

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