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Università della Svizzera italiana

Elections and de facto expenditure decentralization in Canada

Jametti, Mario ; Joanis, Marcelin

This paper empirically investigates the underlying determinants of expenditure decentralization, based on the predictions of a new political economy model of partial decentralization. The analysis is based on an agency model, in which two levels of government are involved in the provision of a public good and voters are imperfectly informed about each government's contribution to the good, ...

Università della Svizzera italiana

Electoral Competition as a Determinant of Fiscal Decentralization

Jametti, Mario ; Joanis, Marcelin

Fiscal decentralization is high on the agenda in policy fora. This paper empirically investigates the underlying causes of fiscal decentralization, based on the predictions of a simple political economy model. We argue that the likeliness that a central government engages in devolution of powers depends in important ways on the political forces that it faces, the theory’'s main insight...