Centralization versus decentralization as a risk-return trade-off by Alessandra Arcuri and Giuseppe Dari‐Mattiacci

By:

Arcuri, Alessandra [author]

Contributor(s):

Dari‐Mattiacci, Giuseppe [co author]

Material type: Text

TextSeries: The Journal of Law and Economics ; Volume 53, number 2Chicago: University of Chicago Press; 2010Content type:

text

Media type:

unmediated

Carrier type:

volume

ISSN:

00222186

Subject(s):

LOC classification:

HB73 JOU

Online resources:

Click here to access online

Summary: This paper characterizes the choice between centralization and decentralization as a risk‐return trade‐off and examines it in a model that integrates ideas from committee decision‐making and portfolio theories. Centralization, by pooling expertise, rarely yields erroneous decisions; however, when it fails, the consequences are global. In contrast, in a decentralized system, erroneous decisions are more frequent, but their consequences are locally confined. We assess the relative desirability of (de‐)centralization in various scenarios with independent versus interdependent risks. We further discuss the robustness of the model and the relevance of our results for policymaking

Reviews from LibraryThing.com:

Tags from this library: No tags from this library for this title. Log in to add tags.

Average rating: 0.0 (0 votes)

Holdings
Item type	Current library	Call number	Vol info	Copy number	Status	Notes	Date due	Barcode
Journal Article	Main Library - Special Collections	HB73 JOU (Browse shelf(Opens below))	Vol. 53, no.2 (pages 359-378)	SP7326	Not for loan	For In House Use Only

Browsing Main Library shelves, Shelving location: - Special Collections Close shelf browser (Hides shelf browser)

Previous	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	Next
Previous	HB73 JOU Environmental Liability and Redevelopment of Old Industrial Land	HB73 JOU Leasing, Lemons, and Moral Hazard	HB73 JOU The Roles of Freedom, Growth, and Religion in the Taste for Revolution	HB73 JOU Centralization versus decentralization as a risk-return trade-off	HB73 JOU Federal Policy and the Rise in Disability Enrollment: evidence for the Veterans Affairs’ Disability Compensation Program	HB73 JOU When Do Applicants Search for Prior Art?	HB73 JOU Property Rights and Parliament in Industrializing Britain	Next

This paper characterizes the choice between centralization and decentralization as a risk‐return trade‐off and examines it in a model that integrates ideas from committee decision‐making and portfolio theories. Centralization, by pooling expertise, rarely yields erroneous decisions; however, when it fails, the consequences are global. In contrast, in a decentralized system, erroneous decisions are more frequent, but their consequences are locally confined. We assess the relative desirability of (de‐)centralization in various scenarios with independent versus interdependent risks. We further discuss the robustness of the model and the relevance of our results for policymaking

There are no comments on this title.

to post a comment.

here