Changes in political boundaries aimed at devolving power to local governments are common in many countries. We examine the economic consequences of redistricting through the creation of smaller government units. Exploiting reforms that led to sharp variations in the number of government units in...

This paper attempts to achieve three targets: First, to prove that Tiebout's local expenditure theory is wasteful; Second, to show how private firms can efficiently supply public goods; Third, to work out the optimal pricing policy for using public goods. In addition, this paper rejects setting...

Cities are increasingly hold accountable for climate action. By demonstrating their pro-environmentality through own climate-related activities, they not at least aspire to encourage individual climate protection efforts. Based on standard economic theory there is little reason to assume that...