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.
- Language
-
Englisch
- Bibliographic citation
-
Series: SFB/TR 15 Discussion Paper ; No. 86
- Classification
-
Wirtschaft
- Subject
-
local public goods
municipal consolidation
voting
intergovernmental transfers
- Event
-
Geistige Schöpfung
- (who)
-
Dur, Robert
Staal, Klaas
- Event
-
Veröffentlichung
- (who)
-
Sonderforschungsbereich/Transregio 15 - Governance and the Efficiency of Economic Systems (GESY)
- (where)
-
München
- (when)
-
2006
- DOI
-
doi:10.5282/ubm/epub.13465
- Handle
- URN
-
urn:nbn:de:bvb:19-epub-13465-2
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Dur, Robert
- Staal, Klaas
- Sonderforschungsbereich/Transregio 15 - Governance and the Efficiency of Economic Systems (GESY)
Time of origin
- 2006
Other Objects (12)
Local public good provision, municipal consolidation, and national transfers
Is Capital Mobility Good for Public Good Provision?
Experience goods and provision of quality
Sustainable investing and public goods provision
Clientelism, public goods provision, and governance
Democratic provision of divisible public goods
Experience goods and provision of quality
Country Size and Public Good Provision
Nudging cooperation in public goods provision
Public Good Provision with a Distributor
Welfare Effects of Migration in Societies with Indirect Taxes, Income Transfers and Public Good Provision
Information defaults in repeated public good provision
Local public good provision, municipal consolidation, and national transfers
Is Capital Mobility Good for Public Good Provision?
Experience goods and provision of quality
Sustainable investing and public goods provision
Clientelism, public goods provision, and governance
Democratic provision of divisible public goods
Experience goods and provision of quality
Country Size and Public Good Provision
Nudging cooperation in public goods provision
Public Good Provision with a Distributor
Welfare Effects of Migration in Societies with Indirect Taxes, Income Transfers and Public Good Provision
Information defaults in repeated public good provision
Local public good provision, municipal consolidation, and national transfers
Is Capital Mobility Good for Public Good Provision?
Experience goods and provision of quality
Sustainable investing and public goods provision
Clientelism, public goods provision, and governance
Democratic provision of divisible public goods
Experience goods and provision of quality
Country Size and Public Good Provision
Nudging cooperation in public goods provision
Public Good Provision with a Distributor
Welfare Effects of Migration in Societies with Indirect Taxes, Income Transfers and Public Good Provision