Arbeitspapier

Federalism and the optimal degree of centralization of public goods

In this paper we analyze the optimal degree of centralization for the supply of public goods. We identify the reliance on an exclusion mechanism as a central feature of the decentralized provision of public goods. An exclusion mechanism induces a contest between users of the public goods who want to free ride and the providers who want to exclude free riding. This contest explains the costs of decentralization. A centralized contribution does not rely on an exclusion mechanism to finance the public goods but on taxation which induces different types of transaction costs. A comparison of the relevant distortions explains the optimal degree of centralization of the supply of public goods.

Sprache
Englisch

Erschienen in
Series: Working Paper ; No. 2002-03

Klassifikation
Wirtschaft
Conflict; Conflict Resolution; Alliances; Revolutions
Public Goods
State and Local Government; Intergovernmental Relations: General
Illegal Behavior and the Enforcement of Law
Thema
Public Goods
Club Goods
Contests
Fiscal Federalism
Öffentliches Gut
Dezentralisierung
Finanzföderalismus
Theorie

Ereignis
Geistige Schöpfung
(wer)
Kolmar, Martin
Ereignis
Veröffentlichung
(wer)
Brown University, Department of Economics
(wo)
Providence, RI
(wann)
2001

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Kolmar, Martin
  • Brown University, Department of Economics

Entstanden

  • 2001

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