In the context of China without a median voter system, this study examines whether the “flypaper effect”, an unconditional lump-sum grant from the upper governments to the county governments increases spending in a greater proportion than an equivalent rise in local income, holds true in...

This study investigates the change in the strength of strategic interaction from a policy introduction stage to a mature stage. The bulk of literature confirms the strategic interaction among local governments, but does not consider the change in the strength of strategic interaction. Our...

The problem of non-uniformity in the level of development of the regions is one of the most important policy goals of any state. In many countries, budget policy of inter-regional alignment made on the basis of special financial mechanisms. This article describes two models of organization of...

Decisions on joint funding of continuous public goods between two agents often involve heterogeneous targets. We introduce loss functions in a contribution game in order to study the effect of this conflict. Unlike Varian (1994), joint contribution occurs only if the players’ targets are...

We develop a game-theoretic analysis of terrorism that examines the interaction between a terrorist organization and multiple target countries, and considers both pre-emption and deterrence as counter-terrorist policies. The damage from terror includes not only the material cost of fatality,...

We investigate the differences and connections between discrete-space and continuous-space social interaction models. Although our class of continuous-space model has a unique equilibrium, we find that discretized models can have multiple equilibria for any degree of discretization, which...

We study the equilibrium properties, including stability, of discrete-space social interaction models with a single type of agents, and their continuous limit. We show that, even though the equilibrium in discrete space can be non-unique for all finite degree of discretization, any sequence of...

We study the equilibrium properties, including stability, of discrete-space social interaction models with a single type of agents, and their continuous limit. We show that, even though the equilibrium in discrete space can be non-unique for all finite degree of discretization, any sequence of...

This study examines the properties of equilibrium, including the stability, of discrete-space agglomeration models with social interactions. The findings reveal that while the corresponding continuous-space model has a unique equilibrium, the equilibrium in discrete space can be non-unique for...

Fiscal decentralization of power from the central to the local level in North Macedonia officially began on July 1st, 2005, and after 20 years there are some changes but in general more than 50% of LGSUs gets transfers from the central government financing were the institutions are located and...