FISCAL INDEPENDENCE, SPILLOVERS, AND RESIDENTIAL CHOICE

Urs Schweizer

Papers in Regional Science, 1985, vol. 56, issue 1, 59-69

Abstract: ABSTRACT Based on some empirical facts about the Swiss system of cities, this paper offers a model for agglomerations consisting of several fiscally independent communities. Every community provides its residents with local public goods produced at U‐shaped average cost curves. In addition, central cities supply their surrounding agglomerations with pure public goods and services. Due to fiscal inequivalence, suburban communities obtain a free ride from the central city. Within such a model, increased spending by central cities is shown to be the only cause for the observed flattening of density gradients.

Date: 1985
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https://doi.org/10.1111/j.1435-5597.1985.tb00838.x

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Persistent link: https://EconPapers.repec.org/RePEc:bla:presci:v:56:y:1985:i:1:p:59-69

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