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Welfare Analysis of the Number and Locations of Local Public Facilities

Author

Listed:
  • Marcus Berliant

    (Washington University in St. Louis)

  • Shin-Kun Peng

    (Academia Sinica & National Taiwan University)

  • Ping Wang

    (Washington University in St. Louis & NBER)

Abstract

We develop a model with a finite number of households and congestable local public goods where the level of provision, the number of facilities and their locations are all endogenously determined. We prove that an equal-treatment identical-provision second-best optimum exists, where all households are required to reach the same utility level, the provision of local public good is required to be the same at all facilities, and all facilities must serve the same number of consumers. Such an optimal public facility configuration may be concentrated (single site) or dispersed (multiple sites), depending on congestability, commuting cost and the household preference parameters.

Suggested Citation

  • Marcus Berliant & Shin-Kun Peng & Ping Wang, 2004. "Welfare Analysis of the Number and Locations of Local Public Facilities," Public Economics 0407015, University Library of Munich, Germany, revised 09 Aug 2005.
  • Handle: RePEc:wpa:wuwppe:0407015
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    2. Marco Brambilla & Alessandra Michelangeli & Eugenio Peluso, 2013. "Equity in the City: On Measuring Urban (Ine)quality of Life," Urban Studies, Urban Studies Journal Limited, vol. 50(16), pages 3205-3224, December.
    3. Shu, Hui & Xiong, Ping-ping, 2019. "Reallocation planning of urban industrial land for structure optimization and emission reduction: A practical analysis of urban agglomeration in China’s Yangtze River Delta," Land Use Policy, Elsevier, vol. 81(C), pages 604-623.
    4. Loumeau, Gabriel, 2023. "Locating Public Facilities: Theory and Micro Evidence from Paris," Journal of Urban Economics, Elsevier, vol. 135(C).
    5. Junlae Kim & Seiyong Kim, 2020. "The Impact of Population Characteristics and Government Budgets on the Sustainability of Public Buildings in Korea’s Regional Cities," Sustainability, MDPI, vol. 12(14), pages 1-15, July.
    6. Sun, Weizeng & Guo, Dongmei & Li, Qiang & Fang, Haidong, 2021. "School runs and urban traffic congestion: Evidence from China," Regional Science and Urban Economics, Elsevier, vol. 86(C).
    7. Berliant, Marcus & Peng, Shin-Kun & Wang, Ping, 2006. "Welfare analysis of the number and locations of local public facilities," Regional Science and Urban Economics, Elsevier, vol. 36(2), pages 207-226, March.
    8. Shin-Kun Peng & Ping Wang, 2003. "Sorting by Foot: Consumable Travel-for Local Public Good and Equilibrium Stratification," IEAS Working Paper : academic research 03-A008, Institute of Economics, Academia Sinica, Taipei, Taiwan.
    9. Dokow, Elad & Luque, Jaime, 2019. "Provision of local public goods in mixed income communities," Journal of Housing Economics, Elsevier, vol. 45(C), pages 1-1.
    10. Ana Opris & Tomislav Kandzija, 2020. "Public Facilities Assessment Methodology," Postmodern Openings, Editura Lumen, Department of Economics, vol. 11(4), pages 64-78, December.
    11. Jiwu Wang & Xuewei Hu & Chengyu Tong, 2021. "Urban Community Sustainable Development Patterns under the Influence of COVID-19: A Case Study Based on the Non-Contact Interaction Perspective of Hangzhou City," Sustainability, MDPI, vol. 13(6), pages 1-20, March.
    12. Shin-Kun Peng, 2014. "Housing Market and Agglomeration of Rent-Seeking Activities: Implications for Regional Development," ERSA conference papers ersa14p326, European Regional Science Association.
    13. Picard, P.M. & Tran, T.T.H., 2021. "Small urban green areas," Journal of Environmental Economics and Management, Elsevier, vol. 106(C).
    14. Chen, Been-Lon & Peng, Shin-Kun & Wang, Ping, 2009. "Intergenerational human capital evolution, local public good preferences, and stratification," Journal of Economic Dynamics and Control, Elsevier, vol. 33(3), pages 745-757, March.

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    More about this item

    Keywords

    Congestable Local Public Goods; Optimal Public Facility Configurations;

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis

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