IDEAS home Printed from https://ideas.repec.org/a/sae/urbstu/v41y2004i3p683-696.html
   My bibliography  Save this article

Urban Governance, Competition and Welfare

Author

Listed:
  • Hannu Laurila

    (Department of Economics, University of Tampere, 33014 Tampere, Finland, hannu.laurila@uta.fi)

Abstract

The market mechanism of spatial resource allocation is examined in a system of cities, where social welfare depends on city size. The competitive dynamics of the system is a product of the interplay between people's individual exit-type choices (migration) and their collective voice-type choices (urban governance). It is shown that the use of efficiency-enhancing measures of urban governance depends on the pressure of exit. A necessary condition for dynamic efficiency is that the market equilibrium of migration is non-stable, which sounds somewhat paradoxical. Dynamic efficiency is more likely to emerge between initially small cities, in which agglomeration economies dominate, than between initially large cities, in which agglomeration diseconomies dominate. The incentives for proper urban governance are somewhat ambiguous in the most relevant case, where cities are of asymmetrical size. It is therefore important to strengthen the incentives by means of national urban policy.

Suggested Citation

  • Hannu Laurila, 2004. "Urban Governance, Competition and Welfare," Urban Studies, Urban Studies Journal Limited, vol. 41(3), pages 683-696, March.
    • Handle: RePEc:sae:urbstu:v:41:y:2004:i:3:p:683-696
    DOI: 10.1080/0042098042000178744
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1080/0042098042000178744
    Download Restriction: no
    File URL: https://libkey.io/10.1080/0042098042000178744?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416-416.
    2. McCann, Philip, 2001. "Urban and Regional Economics," OUP Catalogue, Oxford University Press, number 9780198776451.
    3. Brueckner, Jan K., 1982. "A test for allocative efficiency in the local public sector," Journal of Public Economics, Elsevier, vol. 19(3), pages 311-331, December.
    4. A. J. Auerbach & M. Feldstein (ed.), 1987. "Handbook of Public Economics," Handbook of Public Economics, Elsevier, edition 1, volume 2, number 2.
    5. Rubinfeld, Daniel L., 1987. "The economics of the local public sector," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 2, chapter 11, pages 571-645, Elsevier.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Geert Vissers & Ben Dankbaar, 2016. "Spatial Aspects of Interfirm Collaboration: An Exploration of Firm-Level Knowledge Dynamics," Regional Studies, Taylor & Francis Journals, vol. 50(2), pages 260-273, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gabriel Loumeau & Christian Stettler, 2021. "Fiscal Autonomy and Self-Determination," CESifo Working Paper Series 9445, CESifo.
    2. Barrow, Lisa & Rouse, Cecilia Elena, 2004. "Using market valuation to assess public school spending," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 1747-1769, August.
    3. Martinez-Vazquez, Jorge & McNab, Robert M., 2003. "Fiscal Decentralization and Economic Growth," World Development, Elsevier, vol. 31(9), pages 1597-1616, September.
    4. Wildasin, David E. & Wilson, John Douglas, 1996. "Imperfect mobility and local government behaviour in an overlapping-generations model," Journal of Public Economics, Elsevier, vol. 60(2), pages 177-198, May.
    5. Evgeny N. Timushev, 2019. "Federal Intergovernmental Transfers and the Level of Intraregional Fiscal Decentralization in Russia," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 6, pages 27-42, December.
    6. Shyam Nath & Yeti Nisha Madhoo, 2021. "Environmental fiscal federalism and atmospheric pollution: A tale of two Indian cities," ASARC Working Papers 2021-01, The Australian National University, Australia South Asia Research Centre.
    7. Banzhaf, H. Spencer & Walsh, Randy, 2006. "Do People Vote with Their Feet? An Empirical Test of Environmental Gentrification," RFF Working Paper Series dp-06-10, Resources for the Future.
    8. Sergey Sinelnikov & Pavel Kadochnikov & Ilya Trunin, 2008. "From Elections to Appointments of the Regional Governors: Major Challenges and Outcomes," Published Papers 2, Gaidar Institute for Economic Policy, revised 2008.
    9. Robert P. Inman & Daniel L. Rubinfeld, 1997. "Rethinking Federalism," Journal of Economic Perspectives, American Economic Association, vol. 11(4), pages 43-64, Fall.
    10. Feld, Lars P. & Kirchgassner, Gebhard, 2001. "Income tax competition at the State and Local Level in Switzerland," Regional Science and Urban Economics, Elsevier, vol. 31(2-3), pages 181-213, April.
    11. Robert Inman, 2005. "Financing Cities," NBER Working Papers 11203, National Bureau of Economic Research, Inc.
    12. Guy Gilbert, 1996. "Le fédéralisme financier, perspectives de microéconomie spatiale," Revue Économique, Programme National Persée, vol. 47(2), pages 311-363.
    13. Matthieu Leprince & Sonia Paty & Emmanuelle Reulier, 2005. "Choix d'imposition et interactions spatiales entre collectivités locales. Un test sur les départements français," Recherches économiques de Louvain, De Boeck Université, vol. 71(1), pages 67-93.
    14. George R. Zodrow, 2019. "Intrajurisdictional Capitalization and the Incidence of the Property Tax," World Scientific Book Chapters, in: George R Zodrow (ed.), TAXATION IN THEORY AND PRACTICE Selected Essays of George R. Zodrow, chapter 16, pages 489-522, World Scientific Publishing Co. Pte. Ltd..
    15. Sung Hoon Kang & Mark Skidmore & Laura Reese, 2015. "The Effects of Changes in Property Tax Rates and School Spending on Residential and Business Property Value Growth," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 43(2), pages 300-333, June.
    16. Christian A. L. Hilber, 2017. "The Economic Implications of House Price Capitalization: A Synthesis," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 45(2), pages 301-339, April.
    17. Samira Bakhshi & Mohammad Shakeri & M. Rose Olfert & Mark D. Partridge & Simon Weseen, 2009. "Do Local Residents Value Federal Transfers?," Public Finance Review, , vol. 37(3), pages 235-268, May.
    18. Fluvià, Modest & Rigall-I-Torrent, Ricard & Espinet, Josep Maria & Garriga, Anna & Saló, Albert, 2011. "Precios implícitos de los atributos de los productos turísticos: ¿Qué esconde el efecto de la localización?/Implicit Prices of the Attributes of Tourism Products: What is Hidden Behind Location?," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 29, pages 781-802, Diciembre.
    19. Ferreira, Fernando, 2010. "You can take it with you: Proposition 13 tax benefits, residential mobility, and willingness to pay for housing amenities," Journal of Public Economics, Elsevier, vol. 94(9-10), pages 661-673, October.
    20. Huberto M. Ennis & Santiago M. Pinto & Alberto Porto, 2006. "Choosing a place to live and a workplace," Económica, Instituto de Investigaciones Económicas, Facultad de Ciencias Económicas, Universidad Nacional de La Plata, vol. 0(1-2), pages 15-51, January-D.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:urbstu:v:41:y:2004:i:3:p:683-696. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.gla.ac.uk/departments/urbanstudiesjournal .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.