Public Goods in a Voluntary Federal Union: Implications of a Participation Constraint

Thomas Aronsson (), Luca Micheletto and Tomas Sjögren
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Thomas Aronsson: Department of Economics, Postal: Umeå School of Business and Economics, Umeå University, SE - 901 87, Umeå,, Sweden

No 2012:12, Working Paper Series, Center for Fiscal Studies from Uppsala University, Department of Economics

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 by adding the assumption that the member states are free to leave the economic federation. We show that federal ex-post redistribution leads to e¢ cient provision of local and federal public goods under certain conditions.

Keywords: Public goods; …scal federalism; ex-post redistribution (search for similar items in EconPapers)
JEL-codes: D61 H41 H77 (search for similar items in EconPapers)
Pages: 7 pages
Date: 2012-11-13
New Economics Papers: this item is included in nep-pbe and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published as Aronsson, Thomas, Luca Micheletto and Tomas Sjögren, 'A note on public goods in a decentralized fiscal union: Implications of a participation constraint' in Journal of Urban Economics , 2014, pages 1-8.

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Working Paper: Public Goods in a Voluntary Federal Union: Implications of a Participation Constraint (2012)
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