In the presence of spillovers, decentralized provision of local public goods may lead to a higher surplus than centralized provision even if localities have identical preferences. Indeed, free-riding costs associated to decentralization may be larger than the costs of lobbying activities under centralization.
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Paper provided by LASER (Laboratoire de Science Economique de Richter), Faculty of Economics, University of Montpellier 1 in its series Cahiers du LASER (LASER Working Papers) with number
2005.17.
Length: 6 pages Date of creation: 2005 Date of revision: Handle: RePEc:mop:lasrwp:2005.17
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Find related papers by JEL classification: H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
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