Why not in your backyard? On the location and size of a public facility
AbstractIn this paper, we tackle the issue of locating and sizing a public facility which provides a public good in a closed and populated territory and generates differentiated benefits to households. In the case of a “Nimby” (“Imby”) facility, the smaller is the distance, the smaller (larger) is the individual benefit. Multiple solutions may arise in both cases, and we derive sufficient conditions for uniqueness in both cases. Optimal decisions on location and size are interrelated and depend on the complementarity or substitutability properties of size and distance in the utility function. Then we introduce a common-agency lobbying game, where agents attempt to influence the location and provision decisions by the government. Even when only a subset of households lobbies, the solution of the lobbying game can replicate the optimal solution. Under-provision or over-provision of the public good may be obtained both in the Nimby and the Imby cases. Finally, some non-lobbying households may be better off than in the case where all households lobby, which raises the possibility of free-riding at the lobbying stage.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Regional Science and Urban Economics.
Volume (Year): 43 (2013)
Issue (Month): 1 ()
Contact details of provider:
Web page: http://www.elsevier.com/locate/regec
Facility location; Nimby; Lobbies;
Other versions of this item:
- Giorgio Bellettini & Hubert Kempf, 2008. "Why not in your Backyard? On the Location and Size of a Public Facility," CESifo Working Paper Series 2248, CESifo Group Munich.
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
- R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock
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.:
- Ottaviano, Gianmarco Ireo Paolo & Thisse, Jacques-François, 1999.
"Integration, Agglomeration and the Political Economics of Factor Mobility,"
CEPR Discussion Papers
2185, C.E.P.R. Discussion Papers.
- Ottaviano, Gianmarco I. P. & Thisse, Jacques-Francois, 2002. "Integration, agglomeration and the political economics of factor mobility," Journal of Public Economics, Elsevier, vol. 83(3), pages 429-456, March.
- Ottaviano, G.I.P. & Thisse, J.-F., 1999. "Integration, Agglomeration and the Political Economics of Factor Mobility," Economics Working Papers eco99/27, European University Institute.
- repec:ags:afjare:141665 is not listed on IDEAS
- Frey, Bruno S & Oberholzer-Gee, Felix & Eichenberger, Reiner, 1996. "The Old Lady Visits Your Backyard: A Tale of Morals and Markets," Journal of Political Economy, University of Chicago Press, vol. 104(6), pages 1297-1313, December.
- Martin Besfamille & Jean-Marie Lozachmeur, 2008.
"NIMBY and mechanism design under different constitutional constraints,"
Department of Economics Working Papers
2008-11, Universidad Torcuato Di Tella.
- Martin Besfamille & Jean-Marie Lozachmeur, 2010. "NIMBY and mechanism design under different constitutional constraints," International Tax and Public Finance, Springer, vol. 17(2), pages 114-132, April.
- Grossman, G.M. & Helpman, E., 1992.
"Protection for Sale,"
162, Princeton, Woodrow Wilson School - Public and International Affairs.
- Gene M. Grossman & Elhanan Helpman, 1992. "Protection For Sale," NBER Working Papers 4149, National Bureau of Economic Research, Inc.
- Grossman, Gene & Helpman, Elhanan, 1993. "Protection for Sale," CEPR Discussion Papers 827, C.E.P.R. Discussion Papers.
- Grossman, G.M. & Helpman, E., 1992. "Protection for Sale," Papers 21-92, Tel Aviv.
- Leonardo Felli & Antonio Merlo, 2001.
PIER Working Paper Archive
04-043, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 01 Oct 2004.
- Leonardo Felli & Antonio Merlo, 2003. "Endogenous Lobbying," STICERD - Theoretical Economics Paper Series 448, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
- Felli, L. & Merlo, A., 2000. "Endogenous Lobbying," Working Papers 00-04, C.V. Starr Center for Applied Economics, New York University.
- Leonardo Felli & Antonio Merlo, . "Endogenous Lobbying," CARESS Working Papres 00-03, University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences.
- Leonardo Felli & Antonio M. Merlo, 2000. "Endogenous Lobbying," CESifo Working Paper Series 291, CESifo Group Munich.
- Felli, Leonardo & Merlo, Antonio, 2002. "Endogenous Lobbying," CEPR Discussion Papers 3174, C.E.P.R. Discussion Papers.
- Kunreuther, Howard & Kleindorfer, Paul R, 1986. "A Sealed-Bid Auction Mechanism for Siting Noxious Facilities," American Economic Review, American Economic Association, vol. 76(2), pages 295-99, May.
- Gabriel Ahlfeldt & Wolfgang Maennig, 2007.
"Impact of Sports Arenas on Land Values: Evidence from Berlin,"
0703, International Association of Sports Economists & North American Association of Sports Economists.
- Gabriel Ahlfeldt & Wolfgang Maennig, 2010. "Impact of sports arenas on land values: evidence from Berlin," The Annals of Regional Science, Springer, vol. 44(2), pages 205-227, April.
- Ahlfeldt, Gabriel M. & Maennig, Wolfgang, 2010. "Impact of sports arenas on land values: evidence from Berlin," Open Access publications from London School of Economics and Political Science http://eprints.lse.ac.uk/, London School of Economics and Political Science.
- THISSE, Jacques & WILDASIN, David, 1990.
"Public facility location and urban spatial structure. Equilibrium and welfare analysis,"
CORE Discussion Papers
1990025, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Thisse, Jacques-Francois & Wildasin, David E., 1992. "Public facility location and urban spatial structure : Equilibrium and welfare analysis," Journal of Public Economics, Elsevier, vol. 48(1), pages 83-118, June.
- Per Fredriksson, 2000. "The Siting of Hazardous Waste Facilities in Federal Systems: The Political Economy of NIMBY," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 15(1), pages 75-87, January.
- Wellisch Dietmar, 1995. "Locational Choices of Firms and Decentralized Environmental Policy with Various Instruments," Journal of Urban Economics, Elsevier, vol. 37(3), pages 290-310, May.
- Feinerman, Eli & Finkelshtain, Israel & Kan, Iddo, 2003.
"On A Political Solution To The Nimby Conflict,"
15000, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
- repec:ner:louvai:info:hdl:2078.1/50690 is not listed on IDEAS
- Besley, Timothy & Coate, Stephen, 2001. "Lobbying and Welfare in a Representative Democracy," Review of Economic Studies, Wiley Blackwell, vol. 68(1), pages 67-82, January.
- Minehart, Deborah & Neeman, Zvika, 2002. "Effective Siting of Waste Treatment Facilities," Journal of Environmental Economics and Management, Elsevier, vol. 43(2), pages 303-324, March.
- Munoz-Perez, Jose & Saameno-Rodriguez, Juan Jose, 1999. "Location of an undesirable facility in a polygonal region with forbidden zones," European Journal of Operational Research, Elsevier, vol. 114(2), pages 372-379, April.
- Ingberman Daniel E., 1995. "Siting Noxious Facilities: Are Markets Efficient?," Journal of Environmental Economics and Management, Elsevier, vol. 29(3), pages S20-S33, November.
- Bernheim, B Douglas & Whinston, Michael D, 1986. "Menu Auctions, Resource Allocation, and Economic Influence," The Quarterly Journal of Economics, MIT Press, vol. 101(1), pages 1-31, February.
- Ahlfeldt, Gabriel M., 2009.
"The train has left the station: Do markets value intra-city access to inter-city rail connections?,"
13900, University Library of Munich, Germany.
- Gabriel M. Ahlfeldt, 2011. "The Train has Left the Station: Do Markets Value Intracity Access to Intercity Rail Connections?," German Economic Review, Verein für Socialpolitik, vol. 12(3), pages 312-335, 08.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wendy Shamier).
If references are entirely missing, you can add them using this form.