Taste-homogeneity of Optimal Jurisdictions in a Tiebout Economy with Crowding Types
AbstractWe consider a new model of a local public goods economy with differentiated crowding in which we make a distinction between the tastes and crowding characteristics of agents. It is possible in this model to have taste-homogeneous jurisdictions that take advantage of the full array of positive crowding effects (labor complementarities, for example.) We nevertheless find that taste-heterogeneous jurisdictions are sometimes strictly superior to taste-homogeneous jurisdictions with the same crowding profile. We also provide an example which illustrates the difficulties in extending the intuitive results from the hedonic pricing literature to Tiebout economies with differentiated crowding.
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Bibliographic InfoPaper provided by University of Toronto, Department of Economics in its series Working Papers with number mwooders-98-01.
Length: 25 pages
Date of creation: 11 Jul 1998
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Find related papers by JEL classification:
- C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
- C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
- C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
- D4 - Microeconomics - - Market Structure and Pricing
- D5 - Microeconomics - - General Equilibrium and Disequilibrium
- H40 - Public Economics - - Publicly Provided Goods - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2001-06-22 (All new papers)
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