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The Effect of Spillovers and Congestion on the Segregative Properties of Endogenous Jurisdiction Structure Formation AgEcon
Oddou, Remy.
This paper analyzes the effect of spillovers and congestion of local public goods on the segregative properties of endogenous formation of jurisdiction. Households living in the same place form a jurisdiction and produce a local public good, that creates positive spillovers in other jurisdictions and suffers from congestion. In every jurisdiction, the production of the local public good is financed through a local tax on household's wealth. Local wealth tax rates are democratically determined in all jurisdictions. Households also consume housing in their jurisdiction. Any household is free to leave its jurisdiction for another one that would increase its utility. A necessary and sufficient condition to have every stable jurisdiction structure segregated by...
Tipo: Working or Discussion Paper Palavras-chave: Jurisdictions; Segregation; Spillovers; Congestion; Environmental Economics and Policy; C78; D02; H73; R13.
Ano: 2011 URL: http://purl.umn.edu/108259
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