This paper considers a two-region economy and develops a model of centralized public spending when the regional pivotal voters change as a result of exogenous changes in the voting populace. Decisions over public spending are made by bargaining by the regional representatives in the centralized legislature. We study how changes in the composition of the electorate due, for example, to voters' relocation, migration or aging either deteriorates or mitigates inter-jurisdictional redistributive conflicts and how this influences the size of government.
|Title||Format (Language, Size, Publication date)|
|Paper||pdf (it, 188 KB, 01/02/12)|
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