|
| |
| Robert-Paul Berben, Beata Bierut and Philipp Maier |
| |
| ''The role of regional information in the optimal composition of a committee'' |
| ( 2012, Vol. 32 No.1 ) |
| |
| |
| We analyse the optimal composition of a committee comprising members that have private information and represent constituencies of different economic sizes. ‘Proportional representation' - i.e. each constituency represented proportionally to its economic weight - seems intuitively appealing, but as we demonstrate, the optimal committee composition is more complex. We show that representation in a committee depends also on (i) the ‘intrinsic' uncertainty of the available data, (ii) constituency's degree of sectoral specialization, and (iii) the extent to which economic developments are correlated between constituencies. |
| |
| |
| Keywords: optimal composition of a committee, information uncertainty, regional representation,
EMU enlargement, monetary institutions
|
JEL: E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit: General
|
| |
| Manuscript Received : Feb 25 2011 | | Manuscript Accepted : Feb 06 2012 |
|
