Júlio, Paulo; Peralta, Susana - Gabinete de Estratégia e Estudos (GEE), Ministério da … - 2010
We model two heterogeneous districts of unequal size that may enjoy each other's local public good if a costly national infrastructure (the bridge) is provided. We compare a decentralized regime where local public goods are decided locally and the bridge centrally, with a centralized regime...