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Efficient Structure of Provision for Emergency Public Services

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Author Info

  • Elena INARRA

    (Department of Economic Analysis, Basque Country University)

  • Ana MAULEON

    (Department of Economic Analysis, Basque Country University)

  • Vincent VANNETELBOSCH

    (Institute of Public Economics, Basque Country University)

Abstract

We consider an economy in which a central government has to decide on the provision and location of an emergency public service the quality of which diminishes with distance. The emergency service has to attend a group of municipalities geographically located in a star-tree-graph. We derive the optimal location and provision, as well as the Lindahl prices for the emergency service. Also, we determine the minimum quality of service that makes efficient the existence of a unique provider for the whole economy. Conversely given any level of quality of service we identify the stable and efficient structure of provision.

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File URL: http://sites.uclouvain.be/econ/DP/REL/1999013.pdf
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Bibliographic Info

Paper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (REL - Recherches Economiques de Louvain) with number 1999013.

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Length: 15
Date of creation: 01 Mar 1999
Date of revision:
Handle: RePEc:ctl:louvre:1999013

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