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Persistent link: https://www.econbiz.de/10005780423
Using a Principal-Agent framework, this paper analyzes a public good provision problem in which a central government tries to favor one of the regions or political reasons. We show how this favoritism leads the government to distort the allocation scheme compared to the benevolent case. We then...
Persistent link: https://www.econbiz.de/10005639417
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