Abstract: This paper studies fiscal federalism when voter information varies across regions. We develop a model of political agency with heterogeneously informed voters. Rentseeking politicians provide public goods to win the votes of the informed. As a result, rent extraction is lower in...

Abstract: We build a framework linking competition in the media market to political participation, media slant, and selection of politicians. Media outlets report on the ability of candidates running for office and compete for audience through their choice of slant. Citizens derive utility from...