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Political yardstick competition, economic integration, and constitutional choice in a federation:

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  • Martin Bodenstein
  • Heinrich Ursprung

Abstract

This paper investigates the behavior of rent-seeking politicians in an environment of increasing economic integration. The focus of the paper is on the implications of globalization-induced political yardstick competition for constitutional design with a view to the current discussion in the European Union. In contrast to the established literature, we carefully portray the double-tiered government structure in federal systems. The number of lower-tier governments and the allocation of policy responsibilities to the two levels of government are subject to constitutional choice. Copyright Springer Science + Business Media, Inc. 2005

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  • Martin Bodenstein & Heinrich Ursprung, 2005. "Political yardstick competition, economic integration, and constitutional choice in a federation:," Public Choice, Springer, vol. 124(3), pages 329-352, September.
    • Handle: RePEc:kap:pubcho:v:124:y:2005:i:3:p:329-352
    DOI: 10.1007/s11127-005-2051-5
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