Arbeitspapier

Moral federalism

Many political issues like abortion, gay marriage or assisted suicide are strongly contested because individuals have preferences not only over their own choice but also about other individuals? actions. How should society decide these issues? This paper compares three regimes (centralization, decentralization and federalism) in an economy where individuals choose their residence and vote over a single-dimensional regulatory policy at the regional and national level. The main results are: (i) A move from decentralization to federalism, called moral federalism, is welfare improving behind the veil of ignorance if and only if centralization dominates decentralization, and (ii) for the group that favors a restrictive policy moral federalism is the more attractive the smaller its group size (subject to being the majority group), the larger the suffering from a given policy, and the smaller the regions? weight in determining the federal policy limit. The results are consistent with the Bush administration's attempt to restrict liberal policy choices at the state level after its narrow election victory in 2000.

Language
Englisch

Bibliographic citation
Series: CESifo Working Paper ; No. 1239

Classification
Wirtschaft
Subject
federalism
decentralization
Tiebout equilibrium
consumption externality
morals
Meritorisches Gut
Ethik
Konsuminterdependenz
Föderalismus
Dezentralisierung
Institutioneller Wettbewerb
Abwanderung und Widerspruch
Theorie

Event
Geistige Schöpfung
(who)
Janeba, Eckhard
Event
Veröffentlichung
(who)
Center for Economic Studies and ifo Institute (CESifo)
(where)
Munich
(when)
2004

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Arbeitspapier

Associated

  • Janeba, Eckhard
  • Center for Economic Studies and ifo Institute (CESifo)

Time of origin

  • 2004

Other Objects (12)