This note shows that if commodities are tradable across jurisdictions, then it may be efficient to have heterogeneously sized jurisdictions, even if (i) consumers are identical, (ii) there is one private good and one public good, (iii) utility and production functions are not affected by population (within the relevant range of sizes of jurisdictions).
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Article provided by Economics Bulletin in its journal Economics Bulletin.
Find related papers by JEL classification: H4 - Public Economics - - Publicly Provided Goods H7 - Public Economics - - State and Local Government; Intergovernmental Relations
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