Representation and regional redistribution in federations

This paper examines the role of institutions of territorial representation in shaping long-term patterns of inter-regional redistribution within federations. A simple legislative bargaining model with endogenous taxation suggests that over-represented states should be favored in the distribution of inter-governmental grants regardless of their income level. We demonstrate that a striking relationship between legislative representation and grants holds up in a diverse group of federations from around the world. The relationship appears not to be an artifact of economic development, population size, population density, or the historical conditions under which the federal bargain was struck. Furthermore, we suggest that the attractiveness of poor states as coalition partners implies that intergovernmental transfer systems will often tend toward progressivity under equal apportionment, but the systematic over-representation of wealthy (or poor) states can undermine (or bolster) this logic

Terrorism prevention and electoral accountability

How does electoral accountability affect the effectiveness of terrorism prevention in a democ- racy? We analyze the connection between electoral accountability and policy effectiveness in the context of terrorism prevention. We develop a formal model of an interaction between a government, a minority community, and a representative voter. All actors share the objective of terrorism prevention and have symmetric information. We show that electoral pressures to be successful in terrorism prevention create a commitment problem for the government and this can lead to less security. If the representative voter cares more about terrorism prevention, the government intensifies anti-terrorism activities that are under its direct control, but cooperation by the minority community weakens, and, as a result, security may decrease. We also show that commitment to ex-post suboptimal anti-terrorism activity is desirable for the government, but such commitment is difficult to achieve without explicit institutional constraints such as an effective judicial review on government's antiterrorism actions

Representation and regional redistribution in federations

This paper examines the role of institutions of territorial representation in shaping long-term patterns of inter-regional redistribution within federations. A simple legislative bargaining model with endogenous taxation suggests that over-represented states should be favored in the distribution of inter-governmental grants regardless of their income level. We demonstrate that a striking relationship between legislative representation and grants holds up in a diverse group of federations from around the world. The relationship appears not to be an artifact of economic development, population size, population density, or the historical conditions under which the federal bargain was struck. Furthermore, we suggest that the attractiveness of poor states as coalition partners implies that intergovernmental transfer systems will often tend toward progressivity under equal apportionment, but the systematic over-representation of wealthy (or poor) states can undermine (or bolster) this logic