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Vertically Summing Public Good Demand Curves: An Empirical Comparison of Economic versus Political Jurisdictions

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  • John B. Loomis

Abstract

Fiscal equivalence for efficient provision of a public good requires perfect correspondence between political and economic jurisdictions. However, the spatial extent of the economic jurisdiction is an empirical question. Drawing on four survey-based valuation studies, we measure the "relative public good benefit gradient" as a function of residential location from six natural resource public goods. The results indicate commonly used state political jurisdictions reflect an average of 13% of total benefits in the economic jurisdiction, although with a logarithmic form for distance the upper confidence interval of state benefits can include 100% for some species.

Suggested Citation

  • John B. Loomis, 2000. "Vertically Summing Public Good Demand Curves: An Empirical Comparison of Economic versus Political Jurisdictions," Land Economics, University of Wisconsin Press, vol. 76(2), pages 312-321.
  • Handle: RePEc:uwp:landec:v:76:y:2000:i:2:p:312-321
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    More about this item

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis

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