Local public goods, debt and migration
AbstractMigration raises a potential free rider problem for the provision of durable local public goods if the late-comers can enjoy the public good without paying for it. Allowing communities to finance public goods by debt mitigates this problem, since future immigrants have to share the burden of the debt. However, in equilibrium there will be over-accumulation of local debt. There may be more or less public good than in first best, but conditional on the inefficiently high levels of debt there will be too few public goods. A competitive market for land reduces but does not in general eliminate the inefficiencies.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Public Economics.
Volume (Year): 80 (2001)
Issue (Month): 2 (May)
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Web page: http://www.elsevier.com/locate/inca/505578
Other versions of this item:
- Schultz, C. & Sjostrom, T., 2000. "Local Public Goods, Debt and Migration," Papers 6-00-1, Pennsylvania State - Department of Economics.
- Christian Schultz & Tomas Sjöström, . "Local Public Goods, Debt and Migration," EPRU Working Paper Series 00-11, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
- H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
- H74 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Borrowing
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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