For example, Besley and Coate (2003) provide a political economy (legislative) model to examine centralized versus decentralized provision of local public goods. In this model, they assume that elected representatives in national legislature bargain over public goods provision in multiple districts. Similar to the standard model, if districts are not identical, they find that decentralized provision of local public services continues to be welfare superior in the absence of spillovers. However, contrary to the standard approach, they find that centralization is no longer superior when spillovers are present. Moreover, they find that higher heterogeneity reduces the relative efficiency of centralization for any level of spillovers because heterogeneity creates conflicts of interest between citizens of different districts. Thus, in the presence of heterogeneity between districts, strategic choice of delegates by voters may cause centralization to be less efficient by reducing “preference matching.” Faguet (2004) uses a similar framework to examine whether decentralization increases the responsiveness of public investment to local needs in Bolivia. Ahmad and Brosio (2005) also use an analogous framework to evaluate outcomes of decentralization in Ghana and find mixed results.