THE POLITICAL-ECONOMY OF CENTRALIZATION AND THE EUROPEAN-COMMUNITY

Since 1972, the share of central government expenditure in total publi c expenditure has continued to increase in most industrial countries. In an international cross-section analysis, it has a significant posit ive effect on the share of government spending in GDP. The actors who have an interest in centralization are analyzed. The dynamics of centr alization are attributed to a response asymmetry and two thresholds. ' 'Popitz' law'' of the attraction of the larger budget is tested with r espect to the EC Commission: high-ranking politicians come mainly from the smaller member states. The voters' attitudes toward European unif ication are analyzed in a pooled regression.