On the optimal structure of local governments.

We show that space matters in designing the optimal provision of local public goods (LPG's). Geography imposes a particular institutional structure of local governments due to the overlapping of market areas associated with different LPG's. The optimum can be decentralized through local government...

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Publicado en:American Economic Review Vol. 85; pp. 1224 - 1241
Autores principales: Hochman, Oded, Pines, David, Thisse, Jacques-François
Formato: Artículo
Publicado: American Economic Association December 1995
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Acceso en línea:Ver este registro en EBSCOhost
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      pub: American Economic Association
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        atl: On the optimal structure of local governments.
      aug:
        au:
          Hochman, Oded
          Pines, David
          Thisse, Jacques-François
      su:
        Municipal services
        Mathematical models
        Industrial location
        Municipal government
        Urban geography
        Resource allocation -- Mathematical models
      sug:
        subj:
          Municipal services
          Mathematical models
          Industrial location
          Municipal government
          Urban geography
          Resource allocation -- Mathematical models
      ab: We show that space matters in designing the optimal provision of local public goods (LPG's). Geography imposes a particular institutional structure of local governments due to the overlapping of market areas associated with different LPG's. The optimum can be decentralized through local governments that have jurisdiction over market areas of all LPG types. This implies that the appropriate suppliers of LPG's are metropolitan governments which finance them through user charges and land rent. In addition, our approach invalidates the prevailing theory of fiscal federalism, according to which a layer of government should be established for each type of LPG. Reprinted by permission of the publisher.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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