• Media type: E-Book
  • Title: Would Less Solidarity Justify Present Calls for Devolution?
  • Contributor: Levaggi, Rosella [Author]; Menoncin, Francesco [Other]
  • imprint: [S.l.]: SSRN, [2015]
  • Extent: 1 Online-Ressource (22 p)
  • Language: English
  • DOI: 10.2139/ssrn.2669340
  • Identifier:
  • Origination:
  • Footnote: Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments October 5, 2015 erstellt
  • Description: In this study, we argue that the rules set by a central government to allocate interregional equalization grants may induce richer regions to ask for devolution, even when centralized provision is more efficient. We model a local public good with spillovers in a framework in which devolution is socially inefficient. Nevertheless, we show that the decentralized solution may be preferred by the richer regions if it implies a reduction in solidarity. We define a threshold for regional income disparity above which claims for more devolution may be driven by a reduction in solidarity. Finally, the relative strength of this effect is computed for a sample of countries
  • Access State: Open Access