Economies of City Size in a Price Searcher Model of Local Government
Previous research in local public finance has examined scale economies and publicness issues separately. This paper integrates consumption and production economies utilizing a bureaucracy model of local government. The model predicts the net effects of scale and consumption economies via the estimated population elasticity in expenditure demand functions. The empirical results tend to confirm the results of previous studies that local goods are private in nature and are produced under conditions of constant cost.
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Volume (Year): 42 (1987)
Issue (Month): 2 ()
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