Incentives for separation and incentives for public good provision
AbstractIn this paper I examine the incentives of regions to unite, to separate and to provide public goods. Separation allows for greater influence over the nature of political decision making while unification allows regions to exploit economies of scale in the provision of public goods. When public good provision is relatively inexpensive, separation occurs since individuals want to assert greater influence, while for intermediate costs of public good provision, separation can be explained by the desires for greater influence as well as for more public goods. Compared with the social optimum, there are excessive incentives for public good provision as well as excessive incentives for separation.
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Bibliographic InfoPaper provided by Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich in its series Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems with number 104.
Date of creation: Mar 2006
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More information through EDIRC
unification; separation; public good provision; voting;
Find related papers by JEL classification:
- D7 - Microeconomics - - Analysis of Collective Decision-Making
- H2 - Public Economics - - Taxation, Subsidies, and Revenue
- H7 - Public Economics - - State and Local Government; Intergovernmental Relations
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-04-08 (All new papers)
- NEP-CDM-2006-04-08 (Collective Decision-Making)
- NEP-PBE-2006-04-08 (Public Economics)
- NEP-POL-2006-04-08 (Positive Political Economics)
- NEP-URE-2006-04-08 (Urban & Real Estate Economics)
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