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NIMBY and mechanism design under different constitutional constraints

  • Martin Besfamille

    ()

  • Jean-Marie Lozachmeur

This paper analyses, in a simple two-region model, the undertaking of noxious facilities when the central government has limited prerogatives. The central government decides whether to construct a noxious facility in one of the regions, and how to …nance it. We study this problem under both full and asymmetric information on the damage caused by the noxious facility in the host region. We particularly emphasize the role of the central government prerogatives on the optimal allocations. We …nally discuss our results with respect to the previous literature on NIMBY and argue that taking into account these limited prerogatives is indeed important.

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File URL: http://www.utdt.edu/download.php?fname=_125207356847806600.pdf
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Paper provided by Universidad Torcuato Di Tella in its series Department of Economics Working Papers with number 2008-11.

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Length: 23 pages
Date of creation: Nov 2008
Date of revision:
Handle: RePEc:udt:wpecon:2008-11
Contact details of provider: Web page: http://www.utdt.edu/ver_contenido.php?id_contenido=439&id_item_menu=568

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  1. Bordignon, Massimo & Manasse, Paolo & Tabellini, Guido, 1996. "Optimal Regional Redistribution Under Asymmetric Information," CEPR Discussion Papers 1437, C.E.P.R. Discussion Papers.
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  7. CREMER, Helmuth & MARCHAND, Maurice & PESTIEAU, Pierre, 1994. "Interregional Reditribution through Tax Surcharge," CORE Discussion Papers 1994069, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  8. Makowski Louis & Mezzetti Claudio, 1994. "Bayesian and Weakly Robust First Best Mechanisms: Characterizations," Journal of Economic Theory, Elsevier, vol. 64(2), pages 500-519, December.
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  10. Lockwood, Ben, 1997. "Inter-Regional Insurance," Discussion Papers 9703, Exeter University, Department of Economics.
  11. Denis Lescop, 2007. "Optimal mechanisms for siting noxious facilities," Review of Economic Design, Springer, vol. 10(4), pages 273-284, March.
  12. Richard C. Cornes & Emilson C.D. Silva, 1996. "Local Public Goods, Inter-Regional Transfers and Private Information," Keele Department of Economics Discussion Papers (1995-2001) 96/11, Department of Economics, Keele University.
  13. Alain Jean-Marie & Nicolas Marchetti & Mabel Tidball, 2004. "Low-bid Auction Versus High-bid Auction For Siting Noxious Facilities in a Two-city Region: an Exact Approach," CIRANO Working Papers 2004s-52, CIRANO.
  14. Minehart, Deborah & Neeman, Zvika, 2002. "Effective Siting of Waste Treatment Facilities," Journal of Environmental Economics and Management, Elsevier, vol. 43(2), pages 303-324, March.
  15. Kim, Sangheon, 2003. "An Almost Ideal Solution to the Siting Problem of Publicly Provided Indivisible Goods," International Tax and Public Finance, Springer, vol. 10(4), pages 357-75, August.
  16. Ledyard, John O & Palfrey, Thomas R, 1994. "Voting and Lottery Drafts as Efficient Public Goods Mechanisms," Review of Economic Studies, Wiley Blackwell, vol. 61(2), pages 327-55, April.
  17. Rob, Rafael, 1989. "Pollution claim settlements under private information," Journal of Economic Theory, Elsevier, vol. 47(2), pages 307-333, April.
  18. Keith Waehrer, 1997. "Hazardous Facility Siting When Cost Information is Private: An Application of Multidimensional Mechanism Design," Game Theory and Information 9702004, EconWPA, revised 26 Feb 1997.
  19. Besfamille, Martin, 2004. "Local public works and intergovernmental transfers under asymmetric information," Journal of Public Economics, Elsevier, vol. 88(1-2), pages 353-375, January.
  20. O'Sullivan Arthur, 1993. "Voluntary Auctions for Noxious Facilities: Incentives to Participate and the Efficiency of Siting Decisions," Journal of Environmental Economics and Management, Elsevier, vol. 25(1), pages S12-S26, July.
  21. Kunreuther, Howard & Kleindorfer, Paul R, 1986. "A Sealed-Bid Auction Mechanism for Siting Noxious Facilities," American Economic Review, American Economic Association, vol. 76(2), pages 295-99, May.
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  23. Neeman, Zvika, 1999. "Property Rights and Efficiency of Voluntary Bargaining under Asymmetric Information," Review of Economic Studies, Wiley Blackwell, vol. 66(3), pages 679-91, July.
  24. BUCOVETSKY, Sam & MARCHAND, Maurice & PESTIEAU, Pierre, 1997. "Tax competition and revelation of preferences for public expenditure," CORE Discussion Papers 1997003, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  25. Howard Kunreuther & Doug Easterling, 1996. "The role of compensation in siting hazardous facilities," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 15(4), pages 601-622.
  26. Cornes, Richard C. & Silva, Emilson C. D., 2000. "Local Public Goods, Risk Sharing, and Private Information in Federal Systems," Journal of Urban Economics, Elsevier, vol. 47(1), pages 39-60, January.
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