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Central Funding of Local Public Works

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Listed:
  • Besfamille, M.

Abstract

This paper formalises a three-tier administrative hierarchy. A benevolent federal government must decide how to fund an indivisible local public work, planned to be undertaken by a single firm. But the federal government observes neither the cost nor the local benefit of the project. To obtain this information, he relies on the loval authority which gains from the effective realization of the project.

Suggested Citation

  • Besfamille, M., 1999. "Central Funding of Local Public Works," Papers 99.513, Toulouse - GREMAQ.
  • Handle: RePEc:fth:gremaq:99.513
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    ASYMETRIC INFORMATION ; PUBLIC GOODS ; SOCIAL CHOICE ; DECENTRALIZATION;

    JEL classification:

    • D6 - Microeconomics - - Welfare Economics
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • H4 - Public Economics - - Publicly Provided Goods

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