qIn the third essay, the disciplinary role of elections is discussed. The incumbent politician in a province, with locally procured taxes, provides a local public good and appropriates some private rent. The incumbent's reputation decreases with the amount of rent. Voters may judge the performance of the incumbent in two ways: either his absolute performance matters or his performance is compared with that of the neighboring provinces' incumbent through yardstick competition. In a static setting, the unitary evaluation fares better than relative evaluation in restraining the politician. However, in a dynamic setting, when the stock of reputation increases through time, a relative evaluation imposes higher discipline on incumbent politician.q --aquot;In the third essay, the disciplinary role of elections is discussed.
|Title||:||Federalism, Public Good Provision and Corruption|