Enlargement versus deepening: the trade-off facing economic unions

Arbeitspapier

This paper analyzes the relationship between the size of an economic union and the degree of policy centralization. We consider a political economy setting in which elected representatives bargain about the degree of centralization within the union. In our model strategic delegation affects the identity of the representatives and hence the equilibrium policy outcome. We show that the relationship between the size of the union and centralization may be non-monotonic: Up to a certain size of the union enlargement leads to deeper integration, whereas beyond that size further enlargement implies less centralization. We also show that freezing the level of centralization or allowing an associated membership can mitigate the trade-off.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: CESifo Working Paper ; No. 2455

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Positive Analysis of Policy Formulation and Implementation ; Intergovernmental Relations; Federalism; Secession ; International Fiscal Issues; International Public Goods
• Thema: Fiscal federalism ; policy centralization ; political economy ; Wirtschaftsunion ; Zentralstaat ; Föderalismus ; Public Choice ; Finanzföderalismus ; Theorie

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Lorz, Jens Oliver ; Willmann, Gerald
• Ereignis: Veröffentlichung
• (wer): Center for Economic Studies and ifo Institute (CESifo)
• (wo): Munich
• (wann): 2008

Weitere Informationen

• Handle: http://hdl.handle.net/10419/26500
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ