Relative Capture of Local and Central Governments: An Essay in the Political Economy of Decentralization - eScholarship

@inproceedings{Bardhan1999RelativeCO,
  title={Relative Capture of Local and Central Governments: An Essay in the Political Economy of Decentralization - eScholarship},
  author={Pranab Bardhan and Dilip Mookherjee},
  year={1999}
}
A common presumption is that decentralization is prone to a potential pitfall owing to the greater vulnerability of local governments to capture by local elites. We investigate the determinants of relative capture of local and national governments theoretically, in the context of an extended version of the Baron-Grossman-Helpman model of electoral competition with lobbying by special interest groups. A number of factors do provide support to the traditional presumption, such as reduced… CONTINUE READING

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