Lobbying, Spillovers and the Benefits of Decentralization
In the presence of spillovers, decentralized provision of local public goods may lead to a higher surplus than centralized provision even if localities have identical preferences. Indeed, free-riding costs associated to decentralization may be larger than the costs of lobbying activities under centralization.
|Date of creation:||2005|
|Contact details of provider:|| Postal: LASER, Faculté d'Economie, Avenue Raymond Dugrand, CS 79606, 34960 MONTPELLIER Cedex 2, France|
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