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Decentralization and Local Public Goods: Getting the Incentives Right

  • James Roumasset

    (University of Hawaii)

The paper addresses the nature and locus of appropriate government control in the provision of collective services. It suggests some useful principles |'ur determining organizational structures with the appropriate degree and form of decentralization, which is seen to be an important part of incentive compatibility. In the case of low-income housing, it cites the privatization of sites and services and the devolution of upgrading as two promising models of decentralization.

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File URL: http://pre.econ.upd.edu.ph/index.php/pre/article/download/273/423
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Article provided by University of the Philippines School of Economics and Philippine Economic Society in its journal Philippine Review of Economics.

Volume (Year): 26 (1989)
Issue (Month): 1 (June)
Pages: 1-13

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Handle: RePEc:phs:prejrn:v:26:y:1989:i:1:p:1-13
Contact details of provider: Postal: Diliman, Quezon City 1101
Phone: 927-9686
Web page: http://www.econ.upd.edu.ph/

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  1. Arnold C. Harberger, 1978. "On the Use of Distributional Weights in Social Cost-Benefit Analysis," NBER Chapters, in: Research in Taxation, pages 87-120 National Bureau of Economic Research, Inc.
  2. Demsetz, Harold, 1969. "Information and Efficiency: Another Viewpoint," Journal of Law and Economics, University of Chicago Press, vol. 12(1), pages 1-22, April.
  3. Groves, Theodore & Ledyard, John O, 1977. "Optimal Allocation of Public Goods: A Solution to the "Free Rider" Problem," Econometrica, Econometric Society, vol. 45(4), pages 783-809, May.
  4. Smith, Vernon L, 1980. "Experiments with a Decentralized Mechanism for Public Good Decisions," American Economic Review, American Economic Association, vol. 70(4), pages 584-99, September.
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