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Public Goods in Federal Systems
2004
Social Science Research Network
We study a politico-economic model of federations with both federal and supplemental regional provision of a local public good with spillover effects. Regional differences in median income levels and externalities of provision induce differences in preferences over federal and regional levels of provision. Although the voters' preferences are not single-peaked, we provide sufficient conditions for the existence of a voting equilibrium and characterize its properties under alternative federal
doi:10.2139/ssrn.887518
fatcat:fiumgb6pkfhsxhc3hus5ahbiwy