The Architecture of Government

Index

Accountability, 11, 13, 80, 164, 165, 169, 171, 173, 174, 176, 177, 178, 179, 180, 181, 184, 254, 256, 264, 271, 280, 284

   in authoritarian states, 72

   and democracy, 12

   and political decentralization, 164

   in Tiebout’s argument, 75

   and vertical competition, 146

Acemoglu, Daron, 41

Acton, Lord, 292

Administrative decentralization, 12, 19, 23, 26, 28, 52, 55, 58, 59, 62, 63, 65, 66, 69, 71, 168, 217, 270, 287

   administrative tiers, 23

   definition, 2, 23

Administrative efficiency

   and argument, 11

   and operating costs, 62

   and optimal scale, 58, 63

Adsera, Alícia, 134, 266

Africa, 3, 4, 306

Agassiz, Louis, 247

Agency problems, 179

Albania, 147

Alesina, Alberto, 18, 35, 59, 107

Announcement game, 215

Appointment decentralization, 24, 25, 28, 164, 256

Argentina, 3, 111, 131, 173, 250, 253, 255, 258, 266, 293, 301, 311, 315, 318

Arikan, G. Gulsun, 251, 254

Aristotle, 6, 7, 8, 55, 157, 162

Armenia, 147

Asia, 3, 4

Australia, 250

Authoritarian states, 40

   and leadership selection game, 40

Autonomy, 14, 25

   and local governments, 109

   and threat of ethnic secession, 238

Bardhan, Pranab, 197, 212

Barenstein, Matias, 251, 252

Bebchuk, Lucian, 100

Bednar, Jenna, 173

Belarus, 147

Belgium, 2, 147, 262, 266, 300, 304

Benin, 3

Benson, George, 200, 290

Berkowitz, Daniel, 137, 140

Besley, Timothy, 35, 44, 60, 146, 231

Bewley, Truman, 78, 82, 83, 84

Blair, Tony, 1

Bodin, Jean, 9, 297

Boix, Carles, 134, 135, 266

Bolivia, 3, 147, 255, 269

Bolton, Patrick, 83, 133, 134, 135

Borck, Rainald, 159, 169

Brancati, Dawn, 236, 237, 263

Brandeis, Louis, 14, 222, 223, 224, 226, 233

Brazil, 3, 27, 172, 202, 255, 258, 301

Brennan, Geoffrey, 60, 89, 90, 101, 141

Breton, Albert, 24, 60, 137, 146, 213

Brezhnev, Leonid, 60, 224

Britain. See United Kingdom

Brown, Jerry, 1

Bryan, Frank, 161

Bryce, James, 163, 222, 224

Buchanan, James, 5, 60, 89, 90, 101, 141, 199, 285

Bueno de Mesquita, Bruce, 42

Bulgaria, 147

Bunce, Valerie, 242, 262, 299

Bundesrat, 25, 201

Bureaucratic slack

   and leadership selection game, 39–40, 113

Burke, Edmund, 292

Burki, Shahid Javed, 255, 258

Bush, George W., 1

Cai, Hongbin, 93, 101, 102, 225

Calvo, Ernesto, 70

Canada, 72, 170, 172, 234, 242

Capital mobility, 90, 91, 92, 93, 96

Centralization

   and general definition, 21, 98, 271

Checks, balances and freedom

   and argument, 13

   and benefits of decentralization, 193

Chile, 3, 212

China, 3, 72, 89, 93, 97, 148, 155, 224, 253, 295, 297

Chirac, Jacques, 2, 183

Cicero, 6

Civic virtue, 4, 12, 13, 56, 160, 162, 164, 244, 272

Clinton, Bill, 1

Coase, Ronald, 54

Coate, Stephen, 35, 44, 60

Cohen, Frank, 263

Colombia, 3, 240, 255

Common pool, 5, 15, 105, 106, 107, 108, 109, 274

   central budget as, 106

Communication costs, 65, 66, 213, 214

   and administrative efficiency, 63, 72

Communication effect

   policy experimentation and, 231

Conan Doyle, Arthur, 247

Constitutional decentralization, 25, 26, 28, 123, 201, 202, 232

Conway, Daniel Patrick, 238, 241, 246

Coordination effect

   policy experimentation and, 231

Coordination problems, 52, 61, 140, 146, 165, 169

Corruption, 89, 100, 103, 140, 164, 183, 208

   and decentralization

     studies, 251

Croatia, 147, 243

Cross-national comparisons

   and decentralization studies, 247–9

Czech Republic, 147

Dahl, Robert, 24, 25, 160, 161, 162, 247, 248

Dante, 8, 60, 300

Darius, 60

De Mello, Luiz R. Jr., 127, 251, 252, 258, 259

De Vries, Michiel, 290

Decision-making decentralization, 24, 25, 26, 28, 165

demes, 7, 8, 162

Democracy, 4, 134, 156, 183, 184, 205, 288, 301, 316, 320

   and argument for decentralization, 12

   and centralization, 179

   and fiscal decentralization studies, 251

   and political decentralization studies of, 264

   and unitary system, 183

Denmark, 170

Developing countries

   and fiscal decentralization studies, 254

Dewey, John, 285

Diamond, Larry, 236, 238, 241

Direct democracy, 7, 160, 162

Diskin, Abraham, 264

Dixit, Avinash, 33, 40, 42, 71, 119, 136

Douglas, Stephen, 181

Downs, Anthony, 32, 68, 70

Downsian model, 39, 218

   and limitations of, 34

Downsian model of electoral competition, 33

Eaton, Kent, 240

Economic game, 27, 28, 42, 43, 45, 48, 49

Economic growth

   and fiscal decentralization studies, 262

Economic performance, 12, 125, 150, 249

   and decentralization studies, 258

Elazar, Daniel, 7, 236, 253

Elections

   and discipline, 36

   and leadership selection game, 35

   See local elections

Emerson, Ralph Waldo, 156, 161

Enikolopov, Ruben, 253, 256

Estache, Antonio, 257, 302

Estonia, 147

Ethiopia, 3

Ethnic conflict, 18, 236, 238, 241, 243, 245, 246, 249, 262, 263

   and argument for decentralization, 14

European Monetary Union, 123, 202, 318

European Union, 4

Federalism, 1, 24, 25, 93, 107, 135, 137, 172, 193, 196, 200, 207, 222, 223, 224, 234, 236, 237, 242, 246, 254, 259, 260, 263, 264, 266, 289

   See also decision-making decentralization, 24

Federalist Papers, 1

Ferrell, Allen, 100

Fiscal coordination

   argument against decentralization, 15

Fiscal decentralization, x, 26, 28, 104, 138, 139, 152, 155, 250, 251, 252, 253, 255, 256, 257, 258, 259, 260, 262, 264, 268, 273

   and definition, 25

   and incentives, 146

Fiscal incentives

   and argument for decentralization, 12

Fiscal pressures

   argument against decentralization, 15

Fisman, Raymond, 251, 254

Flaubert, Gustave, 270, 291

Folk Theorem, 197

Fornasari, Francesca, 127, 258, 259

Foweraker, Joe, 264

Fox, Vicente, 2

France, 2, 60, 72, 194, 203, 206, 212, 215, 266, 287, 289, 290

Franzese, Robert, 267

Fuentes, Carlos, 1

Fultz, Dave, 16

Gandhi, Jenifer, 41

Gatti, Roberta, 251, 254

Geographical redistribution, 86, 104, 105, 131, 205

Georgia, 147

Germany, 25, 27, 123, 147, 170, 173, 201, 202, 258, 284, 291

Gingrich, Newt, 1

Gorbachev, Mikhail, 2

Grodzins, Morton, 173

Grossman, Gene

   and model of authoritarian rule, 41

Hallerberg, Mark, 267

Hamilton, Alexander, 13, 82, 126, 194, 195, 196, 198

Harrington, James, 10

Hayek, Friedrich, 5, 12, 74, 211, 223, 224, 285, 286

Healthcare performance

   and fiscal decentralization studies, 255

Hechter, Michael, 238, 263

Hegre, Havard, 264

Henderson, Vernon, 102, 172

Hirschman, Albert, 291

Hitler, Adolph, 283, 284

Hobbes, Thomas, 9, 141

Holmes, Oliver Wendell, 223, 233

Hommes, Rudolph, 281, 282

Horowitz, Donald, 242, 243, 244, 245

Hotelling, Harold, 32

Hug, Simon, 263

Hume, David, 13, 204, 249

Humplick, Frannie, 257

Hungary, 147

Huther, Jeff, 251

Ideological spillovers

   and policy experimentation, 228

Iimi, Atsushi, 262

Independent judiciary, 203, 206

India, 3, 172, 202, 253, 262, 293

Indonesia, 3, 144, 245, 298, 315, 320

Information

   and “local knowledge,” 209–10

   and gathering, 214

Informational advantages

   decentralization and, 165

Informational externality, 227

   policy experimentation and, 226

Inter-American Development Bank, 3

Intergroup redistribution, 104, 105, 132

Iraq, 236, 237, 296

Ireland, 2, 170, 234, 241

Italy, 2, 207, 212, 234

Jefferson, Thomas, 13, 157, 163, 164, 205, 272

Jurisdiction, 49, 50, 54, 71

   and definition, 22

   and multiple tiers, 48

Kalduhn, Ibn, 46

Kastner, Scott L., 267

Kazakhstan, 147

Keen, Michael, 96, 97, 99, 140, 141

Kennan, George, 1

Kornai, János, 108

Kreimer, Seth, 196, 199

Kreps, David M., 125

Kristol, Irving, 156, 290

Krugman, Paul, 16

Kulipossa, Fidelx, 267

Kyrgyzstan, 2

Laffer curve, 47, 95, 96, 113, 122, 142, 144, 149

Laffont, Jean Jacques, 71, 218, 219

Laski, Harold, 207, 223, 290

Latin America, 3, 205, 284

   and decentralization studies, 255

Latvia, 147

Leadership selection game, 27, 31, 38, 39, 44, 48

   and democratic regimes, 32

   and policy precommitment, 32

Lederman, Daniel, 255

Leibniz, Gottfried, 10, 314

Li, Wei, 137, 140

Lincoln, Abraham, 181

Lindbeck, Assar, 119

Linz, Juan, 236, 238, 267

Lippmann, Walter, 207

Lipset, Seymour Martin, 236, 238, 266

Lithuania, 147

Litvack, Jennie, 269, 278, 282

Loayza, Norman, 255

Local competition, 75, 81, 84, 272

   and argument for decentralization, 12

Local elections, 24, 159, 164, 167, 170, 174, 219, 271

   and ethnic communities, 241

   and separatist leaders, 240

Local government, 273

   “schools of evil,”, 163, 244, 272

   “schools of good,”, 163, 244, 272

   and competition for mobile capital, 87

Local information and policy innovation

   and argument for decentralization, 14

Lohmann, Susanne, 123

Londregan, John, 33, 40, 42, 119, 136

Loyseau, Charles, 53, 54, 63, 67, 69

Mackenzie King, William, 234

Macroeconomic stability

   and decentralization studies, 112, 131, 258, 259, 262

Madison, James, 13, 194, 195, 196, 204, 205, 309, 315

Malaysia, 27, 202

Manin, Bernard, 171

Mansbridge, Jane, 161, 162

Mao Zedong, 224, 283

Marchand, Michael, 99, 140

Martinez-Vazquez, Jorge, 259, 262

Median Voter Theorem, 43, 132, 135

Meguid, Bonnie, 265

Meltzer, Allan, 132, 134

Mercedes Benz company, 87, 88, 97, 100

Mexico, 147, 264

Migration. See mobility

Milgrom, Paul, 72, 125

Mill, John Stuart, 4, 13, 14, 69, 157, 158, 163, 164, 209, 210, 213, 230, 231, 272, 286, 288, 289

Milner, Henry, 170

Milton, John, 10, 266, 303

Mitterrand, François, 1

Mobile capital, 45, 51, 75, 87, 88, 89, 93, 94, 97, 98, 99, 101, 103, 145, 146, 154

Mobility (interjurisdictional), 199

Moldova, 147

Montesquieu, Charles de Secondat, baron de, 4, 10, 11, 56, 126, 195, 204, 270, 289

Multi-tier government, 11

   and definition, 22

Myerson, Roger, 183, 184

Nemours, Samuel Dupont de, 215, 216

Netherlands, 170, 291

Nigeria, 147, 244, 254, 262, 264

Nisbet, Robert, 193, 195

Norway, 144, 147, 170

Oakeshott, Michael, 210, 292, 311

Oates, Wallace, 11, 18, 55, 61, 77, 78, 222, 223

Odilon-Barrot, Camille Hyacinthe, 289

Operating costs, 54, 62, 63, 66, 120, 248

Pakistan, 148, 254

panchayat, 3

Paradox of voting, 169

Paraguay, 3

Party systems

   and fiscal decentralization studies, 254

Perotti, Roberto, 107

Persson, Torsten, 35, 132, 133, 135

Peru, 3, 255

Philippines, 3, 139

Pisauro, Giuseppe, 109

Plutarch, 6

Poland, 2, 147

Policy experimentation, 222

Policy externalities, 77, 81, 86

Policy game, 27, 32, 35, 36, 42, 44, 48, 49

Policy issues

   abortion, 86, 180, 181, 227, 228

   slavery, 13, 181, 193, 196, 200

polis, 7, 8, 56, 156, 162, 284

political decentralization

   and distributive policies, 109

Political decentralization, 59, 69, 125, 139, 144, 168, 204, 205, 241, 242

   and accountability, 164

   and civic virtue, 157, 164

   and competition, 74

   and coordination, 168

   and definition, 23, 53

   and distributive policies, 105, 177

   and empirical studies, 251–6

   and ethnic conflict, 237

   and freedom, 198

   and information, 209

   and innovation, 222

   and policy stability, 208

   and summary of arguments for, 11

   and Tiebout’s argument, 84

   and types of, 28

   and Veto players, 201

   versus administrative decentralization, 168

Polybius, 6

Principal–agent problems. See agency problems

Protestant religion

   and fiscal decentralization studies, 241, 251, 252

Proudhon, Pierre Joseph, 10, 13, 25, 204, 205, 207

Prud’homme, Remy, 278, 282

Przeworski, Adam, 41, 164, 291

Ptolemy, 277

Public education

   and decentralization studies, 256

Public good, 11, 18, 29, 30, 42, 43, 46, 49, 50, 54, 55, 56, 57, 58, 59, 62, 63, 73, 75, 76, 77, 78, 79, 80, 81, 83, 85, 86, 87, 88, 99, 100, 104, 112, 116, 123, 133, 137, 141, 143, 146, 154, 166, 175, 176, 178, 181, 182, 185, 186, 187, 188, 189, 192, 214, 215, 216, 217, 218, 219, 220, 221, 223, 274, 287, 300

   and monitoring qualities, 166

   and non-excludability, 175

Putin, Vladimir, 111, 284

Qian, Yingyi, 74, 148

Quality of government

   and decentralization studies, 251

Rau, Johannes, 173

Repeated game, 42, 125, 126, 184, 196, 198, 247

   transfers in, 126

Retrospective voting, 36, 38, 40, 41, 178, 180, 184, 192

   and distributive politics, 186

   and model of, 175, 184

   and no distributive policies, 185

   and uncertainty, 189

Richard, Scott F., 132, 134

Riker, William, 24, 25, 121, 167, 193, 197, 264, 290

Risk-conserving effect

   and policy experimentation, 227

Risk-taking effect

   and policy experimentation, 226

Roberts, John, 72, 125

Robinson, James A., 41

Rodden, Jonathan, 127, 172, 250, 259, 260, 314

Roeder, Philip, 240, 241

Roland, Gérard, 134, 135, 148

Romania, 147

Rousseau, Jean-Jacques, 4, 53, 54, 62, 157, 159, 286, 288, 289, 315

Rubinfeld, Daniel, 77, 78, 81

Russell, Bertrand, 16

Russia, 25, 27, 93, 101, 110, 125, 131, 147, 148, 155, 201, 202, 245, 253, 254, 284, 293, 317

Sabatini, Christopher, 205

Salmon, Pierre, 146

Sambanis, Nicholas, 264, 305

Schumpeter, Joseph, 46

Scotland, 2, 60

Seabright, Paul, 60, 84

Secession, 124, 238

   and ethnic minorities, 18, 236, 238, 240, 246

   and regional governments, 124, 134

Shah, Anwar, 104, 148, 251, 259

Shepsle, Kenneth, 44, 107

Shleifer, Andrei, 140, 148, 231

Sierra Leone, 262

Simeon, Richard, 238, 241, 246

Smoke, Paul, 279, 282

Soares, Rodrigo, 255

Soft budget constraint, 5, 15, 51, 108, 109, 110, 113, 116, 120, 122, 125, 126, 127, 128, 130, 131

   model of, 112

South Africa, 3

Soviet Union, 60, 224, 237, 262

Spain, 2, 147, 234, 262

Spengler, Joseph, 140

Spolaore, Enrico, 18, 59

Stable policies

   and decentralization studies, 267

Stalin, Joseph, 60, 283, 284

Stiglitz, Joseph, 70, 82

Strumpf, Koleman, 61, 224, 225

Subnational government, x, 3, 24, 25, 26, 28, 74, 97, 104, 107, 108, 109, 129, 147, 148, 167, 172, 201, 204, 232, 240, 245, 251, 252, 255, 257, 258, 280

   and decision-making power, 24

   and information advantage, 167

   and mobile capital, 101, 103

   and policy stability, 201, 202

   and protection from central government, 194, 196, 197

   and redistribution, 105, 126, 177

   and soft budget constraint, 127

Suharto, Mohamed, 3, 139

Sweden, 156, 170, 291

Switzerland, 131, 170, 224, 258, 262, 288, 293

Tabellini, Guido, 35, 116, 132, 133, 135

Tajikistan, 147

Tanzi, Vito, 5, 104, 110, 140, 212, 278, 290

Tatneft, 101, 102

Taxes

   distortionary tax, 81, 88, 112, 128

   local taxes, 95, 103, 129

   lump sum tax, 29, 31, 45, 49, 50, 77, 81, 106, 185, 186

   tax sharing, 138, 147, 154, 155

Tiebout, Charles, 12, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 93, 103, 199, 217, 285

Tocqueville, Alexis de, 4, 13, 21, 59, 60, 61, 157, 163, 195, 230, 238, 286, 287, 288, 289

Transfers, 15, 29, 42, 43, 49, 84, 101, 104, 105, 106, 108, 111, 112, 114, 115, 116, 119, 122, 123, 124, 125, 126, 127, 128, 129, 130, 132, 137, 141, 147, 187, 188, 240, 255, 261

Transitional democracies, 183

Treisman, Daniel, 93, 101, 102, 110, 125, 153, 225, 252, 254, 255, 256, 257, 259, 260, 268

Tsebelis, George, 13, 201, 203, 204, 205, 206, 207, 267

Tufte, Edward R., 160, 162, 247, 248

Turgot, Anne-Robert-Jacques, 14, 215, 216

Turkey, 147, 237, 239, 318

Ukraine, 147

United Kingdom, 2, 60, 148, 170, 205, 224, 290

United Nations, 4

   UNDP, 4

U.S. Agency for International Development, 4, 282

U.S. Constitution, 10, 201, 225, 287

U.S. Supreme Court, 173, 222, 223, 228, 229

Venezuela, 3

Vertical competition, 137, 138, 146, 274

   See also Vertical externality

Vertical externality, 51, 140

Vertical imbalance, 127, 128, 131

Veto players, 13, 26, 194, 201, 202, 203, 204, 205, 206, 232, 243, 244, 267, 268

   and argument for decentralization, 13

Vishny, Robert, 140

Wales, 2

Weibull, Jörgen, 119

Weingast, Barry, 13, 44, 74, 107, 126, 148, 195, 196, 198, 203

Welfare Economics, First Theorem of, 275

Wellisz, Stanislaw, 70

Wibbels, Erik, 250, 260, 261

Wildasin, David, 88, 112, 122, 130, 131, 278, 319

Williamson, Oliver, 68, 70

Wilson, James, 10

Wilson, James Q., 208

Wilson, John, 100

Wilson, Robert, 125

Wilson, Woodrow, 223

Wintrobe, Ronald, 40, 41

Wittgenstein, Ludwig, 17, 315

World Bank, 3, 140, 144, 209, 251, 253, 261, 265, 269, 280, 281, 299, 319

Yardstick competition, 146, 167, 168, 177, 178, 231, 232

Yates, Douglas, 93, 170

Yeltsin, Boris, 2

Yugoslavia, 237, 241, 258, 262, 264

Zantman, Wilfried, 218, 219

Zedillo, Ernesto, 2

Zhuravskaya, Ekaterina, 148, 253, 256

Zimbabwe, 3