Does fiscal decentralization in a politically decentralized less developed country help strengthen democratic institutions at the grass root level? And is the impact of such decentralization on local politics important in determining local development? Our study on Indonesia suggests that fiscal...

We analyze the consequences of a monopolistic, non-partisan, profit-maximizing media on policy divergence. The media undertakes costly coverage that may reveal the quality of an office-seeking political challenger only if quality-conscious voters pay an access fee. Voters are ideologically...

We examine the incentives and implications of supplier encroachment, when final good produc-tion requires the use of multiple complementary inputs and the entry of a supplier into the final good market gives rise to mutual outsourcing of inputs between the encroaching supplier and the incumbent....