Title: The political economy of fixed regional investment shares with an illustration for Belgian railway investments
Authors: Proost, Stef
Zaporozhets, Vera
Issue Date: 2010
Publisher: KULeuven CES
Series Title: CES - Discussion paper series 10.05 pages:1-24
Abstract: Many local public goods are allocated by federal governments using fixed regional shares: every region is entitled a fixed share of the total budget for a particular type of public good. This paper compares this fixed regional sharing rule with two alternative allocation rules: first best and common pool allocation. We find that the fixed regional sharing rule performs relatively well if the regional shares are reasonable. Legislative bargaining theory is used to study the determination of the fixed regional shares.
Publication status: published
KU Leuven publication type: IR
Appears in Collections:Research Center of Energy, Transport and Environment, Leuven

Files in This Item:
File Description Status SizeFormat
DPS1005.pdf Published 243KbAdobe PDFView/Open


All items in Lirias are protected by copyright, with all rights reserved.