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Decentralization and Local Public Goods Getting the Incentives Right

  • James Roumasset


    (Department of Economics, University of Hawaii at Manoa)

The paper addresses the nature and locus of appropriate government control in the provision of collective services. It suggests some useful principles for 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 devolution of upgrading as two promising models of decentralization.

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Paper provided by University of Hawaii at Manoa, Department of Economics in its series Working Papers with number 198805.

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Date of creation: 1988
Date of revision:
Handle: RePEc:hai:wpaper:198805
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  1. Demsetz, Harold, 1969. "Information and Efficiency: Another Viewpoint," Journal of Law and Economics, University of Chicago Press, vol. 12(1), pages 1-22, April.
  2. 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.
  3. 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.
  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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