Giuranno, Michele G. and Rongili, Biswas (2012): Inter-jurisdictional migration and the size of government.
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This paper develops a model of centralized public spending where decision-makers are the regional median voters instead of the national median voter of the received literature. Regional representatives decide the level of public spending by bargaining in the central legislature. We study how exogenous changes in the composition of the regional electorate either deteriorate or mitigate inter-jurisdictional redistributive conflicts and how these, in turn, influence the size of the government. We find the conditions under which migration-induced inter-regional income convergence (divergence) leads either to a bigger or a smaller government. Finally, the relationship between migration and efficiency is explored within the present framework.
|Item Type:||MPRA Paper|
|Original Title:||Inter-jurisdictional migration and the size of government|
|Keywords:||Demographic Changes; Government Spending; Inequality; Redistribution; Bargaining; Political Economy Theory|
|Subjects:||H - Public Economics > H5 - National Government Expenditures and Related Policies > H50 - General
R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics
D - Microeconomics > D3 - Distribution > D30 - General
H - Public Economics > H4 - Publicly Provided Goods > H41 - Public Goods
D - Microeconomics > D7 - Analysis of Collective Decision-Making > D78 - Positive Analysis of Policy-Making and Implementation
H - Public Economics > H0 - General > H00 - General
|Depositing User:||MICHELE / MG GIURANNO|
|Date Deposited:||13. Nov 2012 18:35|
|Last Modified:||14. Feb 2013 08:28|
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