Arbeitspapier

Local Public Good Provision, Municipal Consolidation, and National Transfers

We analyze a simple model of local public good provision in a country consisting of a large number of heterogeneous regions, each comprising two districts, a city and a village. When districts remain autonomous and local public goods have positive spillover effects on the neighboring district, there is underprovision of public goods in both the city and the village. When districts consolidate, underprovision persists in the village (and may even become more severe), whereas overprovision of public goods arises in the city as urbanites use their political power to exploit the villagers. From a social welfare point of view, inhabitants of the village have insufficient incentives to vote for consolidation. We examine how national transfers to local governments can resolve these problems.

Sprache
Englisch

Erschienen in
Series: SFB/TR 15 Discussion Paper ; No. 86

Klassifikation
Wirtschaft
Thema
local public goods
municipal consolidation
voting
intergovernmental transfers

Ereignis
Geistige Schöpfung
(wer)
Dur, Robert
Staal, Klaas
Ereignis
Veröffentlichung
(wer)
Sonderforschungsbereich/Transregio 15 - Governance and the Efficiency of Economic Systems (GESY)
(wo)
München
(wann)
2006

DOI
doi:10.5282/ubm/epub.13465
Handle
URN
urn:nbn:de:bvb:19-epub-13465-2
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Dur, Robert
  • Staal, Klaas
  • Sonderforschungsbereich/Transregio 15 - Governance and the Efficiency of Economic Systems (GESY)

Entstanden

  • 2006

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