Welfare Analysis of the Number and Locations of Local Public Facilities

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

Public Economics from University Library of Munich, Germany

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: D61 H41 R13 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2004-07-29, Revised 2005-08-09
New Economics Papers: this item is included in nep-geo
Note: Type of Document - pdf; pages: 39
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Welfare analysis of the number and locations of local public facilities (2006)
Working Paper: Welfare Analysis of the Number and Locations of Local Public Facilities (2004)
Working Paper: Welfare Analysis of the Number and Locations of Local Public Facilities (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwppe:0407015

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