Finite decentralization in a Tiebout economy with crowding types
Abstract
We study a model with local public goods in which agents' crowding effects are formally distinguished from their taste types. It has been shown that the core of such an economy can be decentralized with anonymous admission prices (which are closely related to cost share prices). Unfortunately, such a price system allows for an arbitrary relationship between the public goods level in a given jurisdiction and the cost to an agent for joining. Formally, this means that admission prices are infinite dimensional. Attempts to decentralize the core with finite price systems such as Lindahl prices suggest that this is possible only under fairly restrictive conditions. In this paper, we introduce a new type of price system called finite cost shares. This system has strictly larger dimension than Lindahl prices but, in contrast to general cost share prices, is finite. We show that this allows for decentralization of the core under more general conditions than are possible with Lindahl prices.Download Info
If 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 Info
Article provided by Springer in its journal Social Choice and Welfare.
Volume (Year): 20 (2003)
Issue (Month): 1 ()
Pages: 49-75
Note: Received: 18 January 2000/Accepted: 21 January 2002
Contact details of provider:
Web page: http://link.springer.de/link/service/journals/00355/index.htm
Order Information:
Web: http://link.springer.de/orders.htm
Related research
Keywords:References
No references listed on IDEASYou can help add them by filling out this form.
Citations
Lists
This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.Statistics
Access and download statisticsCorrections
When requesting a correction, please mention this item's handle: RePEc:spr:sochwe:v:20:y:2003:i:1:p:49-75For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F Baum).
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.