New Economics Papers
on Collective Decision-Making
Issue of 2005‒07‒11
one paper chosen by

  1. Competition among different levels of government: the re-election problem By Ponzano, Ferruccio

  1. By: Ponzano, Ferruccio
    Abstract: The aim of this paper is to analyse competition between two levels of government that want to maximise their tax revenues facing the problem of re-election. We assume that citizens have incomplete information about central and local public goods. Then, they are not able to choose a single efficient level of these two goods but they are able to choose a set of combinations. This choice represent the constraint faced by the levels of government. We develop a model starting from this assumption and three extensions to analyse the behaviour of two levels of government in different scenarios. We find that in each situation the equal sharing of the tax revenue is not the best solution for the governments.
    JEL: D43 D72 H11 H71 H77
    Date: 2005–07

General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.