The effect of spillovers and congestion on the segregative properties of endogenous jurisdictions formation
This paper analyzes the e ect of spillovers and congestion of local public services on the segregative properties of endogenous formation of jurisdictions. Households choosing to live at the same place form a jurisdiction whose aim is to produce congested local public services, that can create positive spillovers to other jurisdictions. In every jurisdiction, the production of the local public services is nanced through a local tax based on households' wealth. Local wealth tax rates are democratically determined in all jurisdictions. Households also consume housing in their jurisdiction. Any household is free to leave its jurisdiction for another one that would increase its utility. A necessary and sucient condition to have every stable jurisdictions structure segregated by wealth, for a large class of congestion measures and any spillovers coecients structure, is identi ed: the public services must be either a gross substitute or a gross complement to the private good and the housing.
|Date of creation:||2011|
|Date of revision:|
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- Nicolas Gravel & Sylvie Thoron, 2003.
"Does endogenous formation of jurisdictions lead to wealth stratification?,"
IDEP Working Papers
0306, Institut d'economie publique (IDEP), Marseille, France.
- Gravel, Nicolas & Thoron, Sylvie, 2007. "Does endogenous formation of jurisdictions lead to wealth-stratification?," Journal of Economic Theory, Elsevier, vol. 132(1), pages 569-583, January.
- Bloch, Francis & Zenginobuz, E. Unal, 2006. "Tiebout equilibria in local public good economies with spillovers," Journal of Public Economics, Elsevier, vol. 90(8-9), pages 1745-1763, September.
- Francis Bloch & Unal Zenginobuz, 2007.
"The effect of spillovers on the provision of local public goods,"
Review of Economic Design,
Springer;Society for Economic Design, vol. 11(3), pages 199-216, November.
- Bloch, Francis & Zenginobuz, Unal, 2004. "The Effect of Spillovers on the Provision of Local Public Goods," MPRA Paper 186, University Library of Munich, Germany, revised 05 Oct 2006.
- Biswas, Rongili & Gravel, Nicolas & Oddou, RÃƒÂƒÃ‚Â©my, 2009. "The segregative properties of endogenous jurisdictions formation with a welfarist central government," POLIS Working Papers 121, Institute of Public Policy and Public Choice - POLIS.
- Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416.
- Westhoff, Frank, 1977. "Existence of equilibria in economies with a local public good," Journal of Economic Theory, Elsevier, vol. 14(1), pages 84-112, February.
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