Electoral outcomes and local public goods provision with ex post interregional transfer

Nobuo Akai () and Takahiro Watanabe ()
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Nobuo Akai: Osaka University
Takahiro Watanabe: Kwansei Gakuin University

International Tax and Public Finance, 2023, vol. 30, issue 6, No 7, 1633-1655

Abstract: Abstract This paper analyzes the effect of ex post interregional transfer on electoral outcomes and the provision of local public goods with spillovers. The central government does not have a pre-commitment ability, and the interregional transfer is optimally designed ex post. Our results show that under ex post interregional transfers, electoral outcome are distorted and inefficiencies are created in the local public goods provision. The commitment environment affects the direction (whether it is too small or too large) of this distortion, the degree of which depends on the degree of the spillover effect.

Keywords: Election; Decentralized leadership; Interregional transfer (search for similar items in EconPapers)
JEL-codes: H71 H72 H77 (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/s10797-022-09754-w

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