Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
983989 | Regional Science and Urban Economics | 2013 | 6 Pages |
Abstract
This paper studies how size-induced cost differences in the provision of local public goods affect the efficient level of public spending. Since public goods are non-rival in consumption, the per-capita cost of a given level of public good provision is lower in more populous jurisdictions. We show that this cost advantage gives rise to a substitution of public for private consumption and specify conditions under which the efficient level of local public expenditures per capita rises with a jurisdiction's population size.
Keywords
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Economics and Econometrics
Authors
Thiess Buettner, Fédéric Holm-Hadulla,