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Malaysia has a federal structure of government, suggesting substantial decentralization. In practice, however, the …
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-agent framework, it analyzes two alternative policy-decision schemes - "decentralization" and "centralization" - when "knowledge … explaining variation in the degree of decentralization across countries. Within a two-sided incomplete information principal … government levels. It is shown that, depending on which level of policy decision-making controls the degree of decentralization …
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We develop a model of policy experimentation in federal systems in which heterogeneous districts choose both whether to experiment and the policies to experiment with. The prospect of informational spillovers implies that in the fi rst best the districts converge in their policy choice....
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