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The Provision of Local Public Services in a Risky Environment: An Application to Crime

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Author Info
Traub, Stefan

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Abstract

We state efficiency conditions for the provision of congestable local public goods that diminish individual-specific proprietary risks. The optimum level of such a public service is determined by equating the sum of the reductions of the expected property losses due to a better service level with the marginal costs of the service. The optimum size of the providing local authority in terms of population is obtained where the increase in proprietary risks due to congestion meets the decrease in contributions for the original citizens. As an empirical example, we employ Germany?s crime statistic in order to assess the efficiency of the provision of police services at the state level. --

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Paper provided by Christian-Albrechts-University of Kiel, Department of Economics in its series Economics Working Papers with number 2006,03.

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Date of creation: 2006
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Handle: RePEc:zbw:cauewp:4135

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Web page: http://www.wiso.uni-kiel.de/econ/

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Related research
Keywords: Local Public Goods; Congestion; Risk; Crime; Police;

Find related papers by JEL classification:
R50 - Urban, Rural, and Regional Economics - - Regional Government Analysis - - - General
D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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References listed on IDEAS
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  1. Levitt, Steven D, 1997. "Using Electoral Cycles in Police Hiring to Estimate the Effect of Police on Crime," American Economic Review, American Economic Association, vol. 87(3), pages 270-90, June. [Downloadable!] (restricted)
    Other versions:
  2. Lohse, Tim & Julio R. Robledo & Ulrich Schmidt, 2006. "Self-Insurance and Self-Protection as Public Goods," Diskussionspapiere der Wirtschaftswissenschaftlichen Fakultät der Universität Hannover dp-354, Universität Hannover, Wirtschaftswissenschaftliche Fakultät. [Downloadable!]
    Other versions:
  3. Thiess Buettner, 2003. "Local Determinants of Crime: Distinguishing Between Resident and Non-resident Offenders," ERSA conference papers ersa03p396, European Regional Science Association. [Downloadable!]
    Other versions:
  4. Ehrlich, Isaac & Becker, Gary S, 1972. "Market Insurance, Self-Insurance, and Self-Protection," Journal of Political Economy, University of Chicago Press, vol. 80(4), pages 623-48, July-Aug.. [Downloadable!] (restricted)
  5. Ehrlich, Isaac, 1973. "Participation in Illegitimate Activities: A Theoretical and Empirical Investigation," Journal of Political Economy, University of Chicago Press, vol. 81(3), pages 521-65, May-June. [Downloadable!] (restricted)
  6. Bewley, Truman F, 1981. "A Critique of Tiebout's Theory of Local Public Expenditures," Econometrica, Econometric Society, vol. 49(3), pages 713-40, May. [Downloadable!] (restricted)
  7. Bergstrom, Theodore C & Goodman, Robert P, 1973. "Private Demands for Public Goods," American Economic Review, American Economic Association, vol. 63(3), pages 280-96, June.
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  8. Holcombe, Randall G & Sobel, Russell S, 1995. " Empirical Evidence on the Publicness of State Legislative Activities," Public Choice, Springer, vol. 83(1-2), pages 47-58, April.
    Other versions:
  9. Reiter, Michael & Weichenrieder, Alfons J., 1999. "Public Goods, Club Goods, and the Measurement of Crowding," Journal of Urban Economics, Elsevier, vol. 46(1), pages 69-79, July. [Downloadable!] (restricted)
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  10. Entorf, Horst & Spengler, Hannes, 1998. "Socio-economic and demographic factors of crime in Germany : evidence from panel data of the German states," ZEW Discussion Papers 98-16, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
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  11. Drake, Leigh M. & Simper, Richard, 2005. "Police Efficiency in Offences Cleared: An Analysis of English "Basic Command Units"," International Review of Law and Economics, Elsevier, vol. 25(2), pages 186-208, June. [Downloadable!] (restricted)
  12. McGuire, Martin, 1974. "Group Segregation and Optimal Jurisdictions," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 112-32, Jan.-Feb.. [Downloadable!] (restricted)
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