Decentralization, Vertical Fiscal Imbalance, and Political Selection
Massimo Bordignon (),
Matteo Gamalerio () and
Gilberto Turati ()
Additional contact information
Matteo Gamalerio: University of Warwick
No def002, DISCE - Working Papers del Dipartimento di Economia e Finanza from Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE)
In a career-concern model of politics with endogenous candidacy and different types of politicians, following a decentralization reform, politicians with different skills are elected in municipalities characterized by different levels of autonomous resources. As an effect, consumer welfare increases only, or mainly, in richer municipalities. We test these predictions by exploiting the differentiated reduction in Vertical Fiscal Imbalance in Italian municipalities, due to the strong difference in the tax base, following the decentralization reforms of the '90s. Results strongly support our predictions and are robust to several alternative stories.
Keywords: decentralization; vertical fiscal imbalance; quality of politicians (search for similar items in EconPapers)
JEL-codes: D72 D78 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cdm and nep-pol
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (60) Track citations by RSS feed
Downloads: (external link)
http://dipartimenti.unicatt.it/economia-finanza-def002.pdf First version, 2013 (application/pdf)
Working Paper: Decentralization, Vertical Fiscal Imbalance, and Political Selection (2014)
Working Paper: Decentralization, Vertical Fiscal Imbalance, and Political Selection (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ctc:serie1:def002
Access Statistics for this paper
More papers in DISCE - Working Papers del Dipartimento di Economia e Finanza from Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE) Contact information at EDIRC.
Bibliographic data for series maintained by Simone Moriconi ( this e-mail address is bad, please contact ).