Guriev, Sergei; Yakovlev, Evgeny; Zhuravskaya, Ekaterina - In: Journal of Public Economics 94 (2010) 9-10, pp. 730-748
The optimal degree of decentralization depends on the importance of inter-state externalities of local policies. We show that inter-state externalities are determined by the spatial distribution of interest groups within the country. Interest groups who have multi-state scope internalize...
