Tiebout equilibria in local public good economies with spillovers

• 成果类型: Article
• 署名作者: Bloch, Francis; Zenginobuz, E. Unal
• 署名单位: Aix-Marseille Universite; Aix-Marseille Universite; Bogazici University; Bogazici University
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2005.11.003
• 发表日期: 2006
• 页码: 1745-1763
• 关键词: Local public goods; inter-jurisdictional spillovers; Tiebout equilibrium

摘要

This paper analyzes the effects of spillovers on the equilibrium, population distribution across jurisdictions in a local public good:economy with free mobility. Spillovers are parametrized by a matrix [alpha ij] where ay alpha ij is an element of [0, 1]. When spillovers are symmetric and close. to 0 or 1 (pure local public goods band pure public goods); all equilibrium jurisdiction structures are symmetric. However,. any population. distribution can be sustained,in equilibrium;for some value of the spillover parameter alpha. In the class of utility functions with additive externalities, we identify the unique family of utility functions for which equilibria are symmetric except for an isolated value of alpha. This-is a class of utility functions which are linear-in the public good and a power-function of the private good, u(c,gamma)=-A(l -c)(beta) +gamma. With this specification ofutility, we show that an increase in alpha results in a more fragmented equilibrium population,distribution, and that, when spillovers are asymmetric and large, a jurisdiction which is more centrally locate is benefits more from the public goods provided in other jurisdictions has a larger population, in equilibrium. (c) 2005 Elsevier B.V. All rights reserved.