Fiscal Federalism, Citizen-Candidate Mobility and Political Competition

The present work consists of two parts both analyzing the behavior of individuals participating in the political process. It investigates the personal motivation of politicians acting at the federal and local governmental levels and elaborates the influence of both division of power in a federation and personal mobility on resulting policy outcome. The first part of the work is dedicated to interdependence between political participation and personal mobility and analyses the influence of the mobility on the citizens' willingness to run for a political office in their municipality and on the resulting local policy outcome. The second part is concerned with behavior of the politicians in a federation acting within a double-tiered government structure and analyzes the vertical contest that arises if local politicians, the governors, not only compete for re-election but also for the presidency.