Too many municipalities?
Does democracy lead to the creation of too many municipalities? We analyze this issue within the context of the Alesina e Spolaore (1997) model where the quality of municipal services deteriorates with the distance from the center of a municipality. Individuals can vote in a referendum to split an e...
| Autor principal: | Dahlby, Bev |
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| Outros Autores: | Tribunal Superior Eleitoral |
| Tipo de documento: | Artigo |
| Idioma: | English |
| Publicado em: |
2018
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| Assuntos: | |
| Obter o texto integral: |
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| Resumo: |
Does democracy lead to the creation of too many municipalities? We
analyze this issue within the context of the Alesina e Spolaore (1997)
model where the quality of municipal services deteriorates with the
distance from the center of a municipality. Individuals can vote in a
referendum to split an existing municipality. We show that social welfare
will decline when municipalities are split if the level of the public
service, as chosen by the median voter, is lower in the new smaller
municipalities. In general, the model indicates that there may be a democratic
bias in favour of creating too many municipalities. |
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