Hochman, Oded; Pines, David; Thisse, Jacques-Francois - In: American Economic Review 85 (1995) 5, pp. 1224-40
The authors show that space matters in designing the optimal provision of local public goods. Geography imposes a particular institutional structure of local governments due to the overlapping of market areas associated with different local public goods. The optimum can be decentralized through...
