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The Role of Innovation in the Provision of Local Public Goods

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  • V. Kerry Smith

    (State University of New York at Binghamton)

Abstract

The purpose of this paper is to extend the theory of clubs model of how jurisdictions select the level of local public goods to include innovation in their production and delivery systems. The results of the analysis indicate that cost-sharing rules influence not only the levels of public goods provided and the size of the community, but also the incentives to innovation. Moreover, the objective function implied by the theory of clubs behavioral model calls for innovational choices which are not Pareto efficient.

Suggested Citation

  • V. Kerry Smith, 1976. "The Role of Innovation in the Provision of Local Public Goods," Public Finance Review, , vol. 4(3), pages 285-294, July.
    • Handle: RePEc:sae:pubfin:v:4:y:1976:i:3:p:285-294
    DOI: 10.1177/109114217600400302
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    References listed on IDEAS

    as
    1. Binswanger, Hans P, 1974. "The Measurement of Technical Change Biases with Many Factors of Production," American Economic Review, American Economic Association, vol. 64(6), pages 964-976, December.
    2. McGuire, Martin, 1974. "Group Segregation and Optimal Jurisdictions," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 112-132, Jan.-Feb..
    3. Kerry Smith, V., 1972. "The implications of common property resources for technical change," European Economic Review, Elsevier, vol. 3(4), pages 469-479, December.
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    Cited by:

    1. Sandler, Todd & Tschirhart, John T, 1980. "The Economic Theory of Clubs: An Evaluative Survey," Journal of Economic Literature, American Economic Association, vol. 18(4), pages 1481-1521, December.
    2. Jon D. Harford, 1979. "The Spatial Aspects of Local Public Goods: a Note," Public Finance Review, , vol. 7(1), pages 122-128, January.

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