This note shows that if commodities are tradable across jurisdictions, then it may be efficient to have heterogeneously sized jurisdictions, even if (i) consumers are identical, (ii) there is one private good and one public good, (iii) utility and production functions are not affected by population (within the relevant range of sizes of jurisdictions).
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Length: 6 pages Date of creation: 29 Mar 2001 Date of revision: Publication status: Published, Economics Bulletin, 2001 Handle: RePEc:boc:bocoec:497
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Find related papers by JEL classification: H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
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