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Respond to the question: Model of feredal stability?

10/09/2011 03:43 AM by cesar g; Model of feredal stability
Simon Hug (2005, see attachment) offers an extension of Alesina' and Spolore' unidimensional model of decentralisation from "the size of nations" that into account income and tax inequalities between regions

Hug provides a formulation of dis-utility for a "poor" jurisdiction when goods are centrally provided and there is a uniform tax (p.118).

I am familiarised with the work on Alesina' and Spolore, but I am unable to figure out how Hug's formulation is derived.

I will appreciate if someone could give me an answer to this question or redirected me to another work where the steps for obtaining such a formulation

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