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Heterogeneous Tiebout communities with private production and anonymous crowding

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  • Luque, Jaime
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    Abstract

    This paper provides a general equilibrium model where jurisdictions offer not only public goods, but also job opportunities. In a context of multiple types of consumers, labor complementarities, and anonymous crowding, heterogeneous populated communities form in equilibrium with an endogenous wage system that is labor-type and jurisdiction-type dependent. Equilibrium jurisdiction structures depend on the relative scarcity of labor types, unlike the situation in Berglas' (1976) partial equilibrium analysis. For a large economy, we prove that equilibrium exists and that the set of equilibria is equivalent to the core.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0166046212000439
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    Bibliographic Info

    Article provided by Elsevier in its journal Regional Science and Urban Economics.

    Volume (Year): 43 (2013)
    Issue (Month): 1 ()
    Pages: 117-123

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    Handle: RePEc:eee:regeco:v:43:y:2013:i:1:p:117-123

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    Web page: http://www.elsevier.com/locate/regec

    Related research

    Keywords: Local public goods; Collaborative production; Wages; Anonymous crowding; Visa permits; Societal stratification; Heterogeneous populated communities; Generalized game;

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