Abstract

AbstractThis paper analyses the determinants of welfare benefit levels within a highly fiscally decentralized context. More specifically, we analyse the role of mimicking as a driver of the institutional design of subnational government policies in the absence of federal co‐ordination and financing. Empirically, we focus on the welfare benefit programmes of Spanish regional governments during the period 1996–2015. Our results strongly support the significant role played by mimicking: regional public agents observe what their peers are doing and act accordingly, and this holds even in a context of low mobility of households.

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