Federations, Constitutions, and Political Bargaining

The paper studies a world where a region provides essential inputs for the successful implementation of a local public policy project with spill-overs, and where bargaining between different levels of government may ensure efficient decision making ex post. We ask whether the authority over the public policy measure should rest with the local government or be centralized, allowing financial relationships within the federation to be designed optimally. We show that centralization is always dominant when governments are benevolent, and that both governance structures are otherwise inefficient as long as political bargaining is disregarded. With bargaining, however, the first best can often be achieved under decentralization, but not under centralization. At the root of the result is the alignment of decision making over both essential inputs and final project size under decentralization.Federalism, Constitutions, Decentralization, Grants, Political Bargaining.

Moment-Based Spectral Analysis of Random Graphs with Given Expected Degrees

In this paper, we analyze the limiting spectral distribution of the adjacency matrix of a random graph ensemble, proposed by Chung and Lu, in which a given expected degree sequence $\overline{w}_n^{^{T}} = (w^{(n)}_1,\ldots,w^{(n)}_n)$ is prescribed on the ensemble. Let $\mathbf{a}_{i,j} =1$ if there is an edge between the nodes $\{i,j\}$ and zero otherwise, and consider the normalized random adjacency matrix of the graph ensemble: $\mathbf{A}_n$ $=$ $[\mathbf{a}_{i,j}/\sqrt{n}]_{i,j=1}^{n}$. The empirical spectral distribution of $\mathbf{A}_n$ denoted by $\mathbf{F}_n(\mathord{\cdot})$ is the empirical measure putting a mass $1/n$ at each of the $n$ real eigenvalues of the symmetric matrix $\mathbf{A}_n$. Under some technical conditions on the expected degree sequence, we show that with probability one, $\mathbf{F}_n(\mathord{\cdot})$ converges weakly to a deterministic distribution $F(\mathord{\cdot})$. Furthermore, we fully characterize this distribution by providing explicit expressions for the moments of $F(\mathord{\cdot})$. We apply our results to well-known degree distributions, such as power-law and exponential. The asymptotic expressions of the spectral moments in each case provide significant insights about the bulk behavior of the eigenvalue spectrum

Essays on Asymmetric Federalism

The growing research on fiscal and political federalism in economics (as well as rational choice political science) basically shares two main assumptions regarding federal institutions: it takes democratic and symmetric federations as the reference point. Democracy means that the decision making is based on elections and/or referenda, which effectively constraint the actions of politicians. Symmetry means that the ”degree of devolution” for all regions is identical. In particular, if both federal and regional budgets are funded by a common split tax, the de-jure retention rate is identical for all states. It goes without saying that there is a multitude of models looking at economic asymmetry between regions: most federations include states or regions with significantly different economic potential, population and territory, obviously influencing both their comparative economic performance and their behavior in the federal bargaining. However, the economic asymmetry does not (necessarily) provide an identity mapping into the asymmetric devolution in terms of formal institutions and informal policy making (what I refer to as ”asymmetric federation” in this paper): this issue requires careful analysis.Federalism; decentralization; Russia.

Cognition, Incentives, and Public Governance:Laboratory Federalism from the Organizational Viewpoint

The Second Generation Theory (SGT) of fiscal federalism, which draws upon contemporary economic and industrial organization theory, hitherto focuses only on the negative benefits of public decentralization: the potentially superior ability to align perverse incentives vis-à-vis the centralized governance alternative. The SGT neglects the positive benefits of decentralization (mistake-ridden learning, flexibility, and option discovery), although the limitations of organization theory do not justify such neglect. By likening intergovernmental grants to incomplete contracts, this work shows that the SGT can include the laboratory nature of decentralization.Experimentation, incomplete contracts, intergovernmental grants, learning, Second Generation Theory of fiscal federalism.

The System Paradigm

The introduction explains the sense in which the concept of a paradigm, whose originator, T.S. Kuhn, was inspired by the history of the national sciences, is applied to the context of the social sciences. Here the new paradigm does not necessarily replace the old; several paradigms may function effectively side by side. The milestones in the development of the system paradigm have been the works of Marx, Mises, Hayek, Polányi, Schumpeter and Eucken. Although these make a heterogeneous list in terms of their philosophies and political positions, they share a 'system approach'. They deal not just with individual details of the economy but with the system as a whole, and not just with the economy but with the political, ideological and social dimensions, paying special heed to the interactions between each sphere. The great task for the system paradigm is to study the post-socialist transition. For this, it is indispensable; its explanatory power cannot be replaced by any other paradigm. On the other hand, those applying the system paradigm (like the exponents of other paradigms) are often gravely mistaken. The predictive force of the system paradigm is limited, which urges modesty upon those who employ it.http://deepblue.lib.umich.edu/bitstream/2027.42/39662/3/wp278.pd

Joint Optimization of Edge Computing Architectures and Radio Access Networks

Virtualized radio access network (vRAN) architectures and multiple-access edge computing (MEC) systems constitute two key solutions for the emerging Tactile Internet applications and the increasing mobile data traffic. Their efficient deployment, however, requires a careful design tailored to the available network resources and user demand. In this paper, we propose a novel modeling approach and a rigorous analytical framework, MEC-vRAN joint design problem (MvRAN), that minimizes vRAN costs and maximizes MEC performance. Our framework selects jointly the base-station function splits, the fronthaul routing paths, and the placement of MEC functions. We follow a data-driven evaluation method, using topologies of three operational networks and experiments with a typical face-recognition MEC service. Our results reveal that MvRAN achieves significant cost savings (up to 2.5 times) compared to non-optimized centralized RAN or decentralized RAN systems, and MEC pushes the vRAN functions to radio units and hence can increase substantially the network cost.Work supported by the EC under Grant No 761536 (5GTransformer) and by SFI under Grant No 17/CDA/4760

On the Design of Clean-Slate Network Control and Management Plane

We provide a design of clean-slate control and management plane for data networks using the abstraction of 4D architecture, utilizing and extending 4D’s concept of a logically centralized Decision plane that is responsible for managing network-wide resources. In this paper, a scalable protocol and a dynamically adaptable algorithm for assigning Data plane devices to a physically distributed Decision plane are investigated, that enable a network to operate with minimal configuration and human intervention while providing optimal convergence and robustness against failures. Our work is especially relevant in the context of ISPs and large geographically dispersed enterprise networks. We also provide an extensive evaluation of our algorithm using real-world and artificially generated ISP topologies along with an experimental evaluation using ns-2 simulator