Schultz, C.; Sjostrom, T. - Department of Economics, Pennsylvania State University - 2000
enjoy the public good without paying for it. Allowing communities to finance public goods by debt mitigates this problem …, since future immigrants have to share the burden of the debt. However, in equilibrium there will be over-accumulation of … local debt. There may be more or less public good than in first best, but conditional on the inefficiently high levels of …