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Does Government Decentralization Increase Policy Innovation?
Open accessAbstract
The conventional wisdom is that government decentralization promotes policy innovation because it allows for several simultaneous experiments by local governments. However, this ignores a learning externality: successful policy experiments provide useful information for all governments. Local governments will ignore this externality, but a central government should take it into account. This article uses a social learning model to compare policy innovation under centralization and decentralization. Centralization leads to more policy innovation if the local governments are relatively homogeneous or large in number. However, decentralization may induce more policy innovation if there are multiple experimental policies available.
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Citations
Cited by
The Architecture of Government: Rethinking Political Decentralization
Treisman, D. (2007) · Cambridge University Press eBooks · doi:10.1017/cbo9780511619151 · Cited by 800
Fiscal Decentralization and Economic Growth
Martinez-Vazquez, J., & McNab, R. M. (2003) · World Development · doi:10.1016/s0305-750x(03)00109-8 · Cited by 629
Political institutions and policy choices: evidence from the United States
Besley, T. (2002) · Working Paper Series · doi:10.1920/wp.ifs.2002.0213 · Cited by 577
Beyond Marble Cakes and Picket Fences: What U.S. Federalism Scholars Can Learn from Comparative Work
Weissert, C. S. (2011) · The Journal of Politics · doi:10.1017/s0022381611000855 · Cited by 22
Metadata
- Authors
- Strumpf, K. S.
- Venue
- Journal of Public Economic Theory
- Publisher
- Wiley
- Published
- 2002-04
- Volume
- 4
- Issue
- 2
- Pages
- 207-241
- ISSN
- 1097-3923 (ISSN-L)
- 1467-9779
- OpenAlex
- W3121649117
- Cited by
- 212
- References
- 0
- FWCI
- 36.25
- Type
- journal article
- Language
- en
- Open access
- green
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