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Local public goods and clubs

In: Handbook of Public Economics

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  • Scotchmer, Suzanne

Abstract

I discuss recent contributions to the theory of group formation and the provision of jointly consumed public goods and services. I highlight the distinction between models of pure group formation, and models where the formation of groups and the sharing of public goods are constrained by a division of geographic space into jurisdictions. Much of the literature concerns the distortions that arise when price systems or tax systems are constrained, for example, to serve the dual roles of redistributing income and funding public services. I also highlight the distortions that can arise from arbitrary divisions of space, and review recent contributions that emphasize the distortions that arise when there are both public and private providers of services. My focus is mainly on equilibrium concepts and policy instruments.

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This chapter was published in:

  • A. J. Auerbach & M. Feldstein (ed.), 2002. "Handbook of Public Economics," Handbook of Public Economics, Elsevier, edition 1, volume 4, number 4.
    This item is provided by Elsevier in its series Handbook of Public Economics with number 4-29.

    Handle: RePEc:eee:pubchp:4-29

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    Web page: http://www.elsevier.com/wps/find/bookseriesdescription.cws_home/BS_HE/description

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    Cited by:
    1. TABUCHI, Takatoshi & THISSE, Jacques-François, . "A new economic geography model of central places," CORE Discussion Papers RP -2267, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    2. Daron Acemoglu & Georgy Egorov & Konstantin Sonin, 2012. "Dynamics and Stability of Constitutions, Coalitions, and Clubs," American Economic Review, American Economic Association, vol. 102(4), pages 1446-76, June.
    3. Luca Corazzini, Ugo Gianazza, 2006. "Asymmetric Contributions from Identical Agents in a Local Interaction Model," ISLA Working Papers 24, ISLA, Centre for research on Latin American Studies and Transition Economies, Universita' Bocconi, Milano, Italy, revised Mar 2007.
    4. Francisco Martínez Mora, 2004. "The impact of fiscal decentralization on income segregation," Economic Working Papers at Centro de Estudios Andaluces E2004/68, Centro de Estudios Andaluces.
    5. Hochman, Oded, 2011. "Efficient agglomeration of spatial clubs," Journal of Urban Economics, Elsevier, vol. 69(1), pages 118-135, January.
    6. Gilles, R.P. & Lazarova, E.A. & Ruys, P.H.M., 2011. "Economic Institutions and Stability: A Network Approach," Discussion Paper 2011-084, Tilburg University, Center for Economic Research.
    7. Dahm, Matthias, 2009. "Free Mobility and Taste-Homogeneity of Jurisdiction Structures," Working Papers 2072/15809, Universitat Rovira i Virgili, Department of Economics.
    8. Martijn B.W. Kobus & Jos N. van Ommeren & Hans R.A. Koster & Piet Rietveld, 2013. "Congestible Goods and Hoarding: A Test based on Students' Use of University Computers," Tinbergen Institute Discussion Papers 13-083/VIII, Tinbergen Institute.
    9. Cheikbossian, Guillaume, 2008. "Rent-seeking, spillovers and the benefits of decentralization," Journal of Urban Economics, Elsevier, vol. 63(1), pages 217-228, January.
    10. Diego Puga, 2010. "The Magnitude And Causes Of Agglomeration Economies," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 203-219.
    11. Furtan, William Hartley & Guzel, A. & Weseen, A.S., 2005. "Landscape Clubs: Co-existence of GM and Organic Crops," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24495, European Association of Agricultural Economists.
    12. Breuille, Marie-Laure & Gary-Bobo, Robert J., 2007. "Sharing budgetary austerity under free mobility and asymmetric information: An optimal regulation approach to fiscal federalism," Journal of Public Economics, Elsevier, vol. 91(5-6), pages 1177-1196, June.
    13. Bloch, Francis & Zenginobuz, E. Unal, 2006. "Tiebout equilibria in local public good economies with spillovers," Journal of Public Economics, Elsevier, vol. 90(8-9), pages 1745-1763, September.
    14. Eduardo Morales-Ramos, 2009. "The evolution of fuzzy multidimensional poverty in Mexico, 1994-2006," Working Papers 2009-04, Banco de México.
    15. Konishi, Hideo, 2013. "Entrepreneurial land developers: Joint production, local externalities, and mixed housing developments," Journal of Urban Economics, Elsevier, vol. 75(C), pages 68-79.
    16. Gilles, R.P. & Lazarova, E.A. & Ruys, P.H.M., 2008. "Stable Economic Cooperation: A Relational Approach," Discussion Paper 2008-25, Tilburg University, Center for Economic Research.
    17. Zeng, Dao-Zhi, 2008. "New economic geography with heterogeneous preferences: An explanation of segregation," Journal of Urban Economics, Elsevier, vol. 63(1), pages 306-324, January.
    18. Elvery, Joel A., 2010. "City size and skill intensity," Regional Science and Urban Economics, Elsevier, vol. 40(6), pages 367-379, November.

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