Heterogeneous Tiebout communities with private production and anonymous crowding

Jaime Luque

Regional Science and Urban Economics, 2013, vol. 43, issue 1, 117-123

Abstract: This paper provides a general equilibrium model where jurisdictions offer not only public goods, but also job opportunities. In a context of multiple types of consumers, labor complementarities, and anonymous crowding, heterogeneous populated communities form in equilibrium with an endogenous wage system that is labor-type and jurisdiction-type dependent. Equilibrium jurisdiction structures depend on the relative scarcity of labor types, unlike the situation in Berglas' (1976) partial equilibrium analysis. For a large economy, we prove that equilibrium exists and that the set of equilibria is equivalent to the core.

Keywords: Local public goods; Collaborative production; Wages; Anonymous crowding; Visa permits; Societal stratification; Heterogeneous populated communities; Generalized game (search for similar items in EconPapers)
JEL-codes: C70 D71 H40 R13 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:regeco:v:43:y:2013:i:1:p:117-123

DOI: 10.1016/j.regsciurbeco.2012.05.007

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