Arbeitspapier
Federal directives, local discretion and the majority rule
We consider a federation in which citizens determine by federal majority rule a discretionary policy space which partially restricts the sovereignty of member states. Citizens first vote on the size of the discretionary space (the degree of local discretion), and then on its location on the policy space (the federal directive). Finally, each state votes on its respective policy within the discretionary space. This federal mechanism allows voters to express directly their trade-off between flexibility and policy harmonization. We show that at the voting equilibrium, the federal directive is negatively sensitive to the preferences of nonmedian voters. Moreover, the degree of local discretion is too limited and insufficiently sensitive to the magnitude of externalities. Hence, the model shows that inadequate and excessively rigid federal interventions can emerge from a neutral and democratic decision process without agency costs or informational imperfections.
- Sprache
-
Englisch
- Erschienen in
-
Series: Discussion Paper ; No. 1522
- Klassifikation
-
Wirtschaft
Intergovernmental Relations; Federalism; Secession
Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- Thema
-
Federalism
Local Discretion
Directive
Partial Decentralization
Majority rule
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Loeper, Antoine
- Ereignis
-
Veröffentlichung
- (wer)
-
Northwestern University, Kellogg School of Management, Center for Mathematical Studies in Economics and Management Science
- (wo)
-
Evanston, IL
- (wann)
-
2010
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Loeper, Antoine
- Northwestern University, Kellogg School of Management, Center for Mathematical Studies in Economics and Management Science
Entstanden
- 2010
Ähnliche Objekte (12)
Majority judgment vs. majority rule
Rules, Discretion or Reputation?
Flexible Majority Rules
Debt-Sensitive Majority Rules
Making Subsidies Work: Rules vs. Discretion
Making Subsidies Work: Rules vs. Discretion
Making Subsidies Work: Rules vs. Discretion
Rules versus discretion in fiscal policy
Optimal majority rule in referenda
Rules and discretion in international economic policy
Rules versus discretion in loan rate setting
Resource allocation by frugal majority rule
Majority judgment vs. majority rule
Rules, Discretion or Reputation?
Flexible Majority Rules
Debt-Sensitive Majority Rules
Making Subsidies Work: Rules vs. Discretion
Making Subsidies Work: Rules vs. Discretion
Making Subsidies Work: Rules vs. Discretion
Rules versus discretion in fiscal policy
Optimal majority rule in referenda
Rules and discretion in international economic policy
Rules versus discretion in loan rate setting
Resource allocation by frugal majority rule
Majority judgment vs. majority rule
Rules, Discretion or Reputation?
Flexible Majority Rules
Debt-Sensitive Majority Rules
Making Subsidies Work: Rules vs. Discretion
Making Subsidies Work: Rules vs. Discretion
Making Subsidies Work: Rules vs. Discretion
Rules versus discretion in fiscal policy
Optimal majority rule in referenda
Rules and discretion in international economic policy
Rules versus discretion in loan rate setting