Welfare Analysis of the Number and Locations of Local Public Facilities

Marcus Berliant (), Shin-Kun Peng () and Ping Wang ()

Public Economics from EconWPA

Abstract: We develop a model with a finite number of households and congestable local public goods where the level of provision, the number of facilities and their locations are all endogenously determined. We prove that an equal-treatment identical-provision second-best optimum exists, where all households are required to reach the same utility level, the provision of local public good is required to be the same at all facilities, and all facilities must serve the same number of consumers. Such an optimal public facility configuration may be concentrated (single site) or dispersed (multiple sites), depending on congestability, commuting cost and the household preference parameters.

Keywords: Congestable Local Public Goods; Optimal Public Facility Configurations (search for similar items in EconPapers)
JEL-codes: H41 R13 D61 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-geo
Date: 2004-07-29, Revised 2005-08-09
Note: Type of Document - pdf; pages: 39
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http://129.3.20.41/eps/pe/papers/0407/0407015.pdf (application/pdf)

Related works:
Working Paper: Welfare Analysis of the Number and Locations of Local Public Facilities (2000)
Journal Article: Welfare analysis of the number and locations of local public facilities (2006)
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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwppe:0407015

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