This article analyzes the relationship between the mix of cash transfers and in-kind goods provided by local governments and the local population size and individual preferences. On theoretical grounds, the traditional theory of fiscal federalism and recent contributions on both the local...

This paper aims at analysing the population size of local jurisdictions with respect to the characteristics of the goods they provide to their citizens. The economic analysis on the size of government units is mainly founded on the classical fiscal federalism literature (Tiebout, 1956; Buchanan, 1965;...