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Snobbery, Racism, or Mutual Distaste: What Promotes and Hinders Cooperation in Local Public-Good Provision?

David Brasington ()

The Review of Economics and Statistics, 2003, vol. 85, issue 4, 874-883

Abstract: A political jurisdiction may decide to cooperate in public schooling provision with its neighbors or remain independent. The determinants of the consolidation decision are compared for the richer and the poorer and for the whiter and the less white jurisdiction in each potential consolidation pair. Property values and scale economies matter most. However, poorer jurisdictions prefer merging with richer ones that are less white than themselves. Whiter jurisdictions prefer to consolidate with less white ones of similar income. Less white jurisdictions are more open to consolidation with whiter ones if their incomes differ in either direction. Traditional club-theory predictions are not supported. © 2003 President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Date: 2003
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The Review of Economics and Statistics is currently edited by Amitabh Chandra, Olivier Coibion, Bryan S. Graham, Shachar Kariv, Amit K. Khandelwal, Asim Ijaz Khwaja, Brigitte C. Madrian and Rohini Pande

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