Information and Targeted spending

Antonio Nicolo, Jon X. Eguia

Research output: Contribution to journalArticlepeer-review

Abstract

We present an electoral theory on the public provision of local public goods to
an imperfectly informed electorate. We show that electoral incentives lead to greater
spending if the electorate is not well informed. A more informed electorate induces
candidates to target funds only to specific constituencies, which can reduce aggregate
welfare.
Original languageEnglish
Pages (from-to)373–402
JournalTheoretical Economics
Volume14
Issue number2
DOIs
Publication statusPublished - 1 May 2019

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