Economies of City Size in a Price Searcher Model of Local Government

Rodolfo A Gonzalez and Stephen L Mehay

Public Finance = Finances publiques, 1987, vol. 42, issue 2, 236-49

Abstract: Previous research in local public finance has examined scale economies and publicness issues separately. This paper integrates consumption and production economies utilizing a bureaucracy model of local government. The model predicts the net effects of scale and consumption economies via the estimated population elasticity in expenditure demand functions. The empirical results tend to confirm the results of previous studies that local goods are private in nature and are produced under conditions of constant cost.

Date: 1987
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Persistent link: https://EconPapers.repec.org/RePEc:pfi:pubfin:v:42:y:1987:i:2:p:236-49

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