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I discuss the extent to which the theory of local public goods and clubs is an extension of competitive theory. To do this I reinterpret efficiency results in the literature as arising from optimization against a complete price system. For clubs I give a framework to unify club economies with...
Persistent link: https://www.econbiz.de/10005078796
In a free mobility equilibrium with voting for pure public goods within jurisdictions and equal cost sharing, consumers will partition themselves such that high-demand jurisdictions are much larger than low-demand jurisdictions. We compare the welfare implications of a change in the number of...
Persistent link: https://www.econbiz.de/10005066156