By extending the incomplete contract model to the provision of local collective goods, this paper formally analyzes the political hold-up problem between landowner and collective goods provider in urban land use. The model focuses on three-party contractual relationship and analyzes the impact...

This paper takes a fresh look at the trade-off between centralized and decentralized provision of local public goods. The point of departure is to model a centralized system as one in which public spending is financed by general taxation, but districts can receive different levels of local...