Econ 337 #9 - Since the Tiebout process does not eliminate...

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Since the Tiebout process does not eliminate the variance in desired government service within communities, voting is required and used to find a compromise position within those remaining differences of opinion.
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Public Choice without mobility: Voting Chapter 3
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Political institution matters… 1. Direct democracy 2. Representative democracy
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The ungovernable state-- California The Economist May 16, 2009 California has a unique combination of features which, individually, are shared by other states but collectively cause dysfunction. 1. Any budget requires a two-thirds majority in both houses of the legislature. Two other states, Rhode Island and Arkansas, have such a law. 1. In addition, taxation also requires two-thirds majorities for any tax increase. California: Taxation and budgets are determined separately Twelve other states demand this. 3. Only California, however, has both requirements.
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Representative democracy is only one half of California's peculiar governance system. The other half, direct democracy , fails just as badly. California is one of 24 states that allow referendums, recalls and voter initiatives. It is the only state that does not allow its legislature to override successful initiatives (called "propositions") and has no sunset clauses that let them expire. It also uses initiatives far more than any other state.
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Initiatives Direct democracy
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under Direct democracy Several kinds of voting procedures: 1. Unanimity rules 2. Majority voting rules 3. Logrolling Some questions we’d like to answer: Do all these voting procedures lead to the same voting outcome? Is unanimity rule the optimal decision rule?
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Econ 337 #9 - Since the Tiebout process does not eliminate...

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