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| Author: | Redoano, M. Scharf, K. A. |
| Title: | The political economy of policy centralization: direct versus representative democracy |
| Journal: | Journal of Public Economics
2004 : MAR, VOL. 88:3-4, p. 799-817 |
| Index terms: | Political economy Democracy Harmonization Centralisation |
| Language: | eng |
| Abstract: | The authors analyze policy centralization outcomes in a two-jurisdiction model of public good provision choices with heterogeneous policy preferences and interjurisdictional policy spillovers under two alternative political procedures, direct referendum and representative democracy. They show that policy centralization is more likely to occur if the choice to entralize is made by elected policymakers rather than by referendum. In these situations, centralized policies converge to the preferred level of the jurisdiction that least favours centralization, rather than to a compromise between the two jurisdictions' preferred levels. |
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