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...

Conventional wisdom tells us that with no market failure and local non- satiation of preferences, the core is at least as large as the collection of competitive equilibrium allocations. We confirm this for a standard model featuring land. Next we consider the public land ownership version of the...

Planners wish to avoid a lawsuit by the developer over their cost estimates of the public works required by his project. To avoid a suit, they can offer him his choice of several sets of conditions that would attach to land-use permits. In computer simulations of five such short- and long-term...

Small jurisdictions vie for economic development by relaxing pollution controls. This can cause damaging spillovers. Many policy analysts recommend replacing the small jurisdictions with a single authority that taxes development. But as the sole producer of development rights to a unique area,...