Institutional design, political competition and spillovers

Publication date: Available online 7 January 2020Source: Regional Science and Urban EconomicsAuthor(s): Marco Alderighi, Christophe FederAbstractWe establish a link between the best system of government and the strength of inter-state spillovers within a model of political competition with self-interested parties. We show the superiority of the unitary system when: inter-state spillovers are strong; the ego rents of local parties are high; and the system of government is chosen under a veil of ignorance.
Source: Regional Science and Urban Economics - Category: Science Source Type: research