Post developed by Catherine Allen-West in coordination with Diogo Ferrari
ICYMI (In Case You Missed It), the following work was presented at the 2016 Annual Meeting of the American Political Science Association (APSA). The presentation, titled “The Indirect Effect of Income on Preferences for Centralization of Authority,” was a part of the session “Devolution, Fragmented Power, and Electoral Accountability” on Thursday September 1, 2016.
One of the primary activities of any elected government is to decide how to allocate public funds for policies like health care and education. In countries that adopted a federal system – like the United States, Canada, Australia, Germany, and others – the central government usually has some policies that promotes distribution of fiscal resources among different jurisdictions, like among states or cities. Take Australia for example. The federal government collects taxes that are funneled to local governments in accordance with their needs. This diminishes the inequality between different Australian sub-national governments in their capacity to invest and provide public services. Brazil is another example. Brazil has a huge federal program that transfers resources from rich to poor states and whose goal is to reduce regional inequality. These federal governments can only continue to operate in this way, that is, promoting interregional redistribution, if the power to control fiscal resources is centralized. Therefore, there is a connection between interregional redistribution and centralization of authority.
Now, voters have different preferences about how the government should spend the fiscal resources. They have different opinions, for instance, to which degree taxes collected in one region should be invested in another region. Do voters that support interregional redistribution also prefer that the fiscal authority is concentrated in the hands of the federal government as opposed to the sub-national ones? Which characteristics determine the preference of voters regarding interregional redistribution and centralization of authority? How those preferences are connected?