Vertically Summing Public Good Demand Curves: An Empirical Comparison of Economic versus Political Jurisdictions
Land Economics, 2000, vol. 76, issue 2, 312-321
Fiscal equivalence for efficient provision of a public good requires perfect correspondence between political and economic jurisdictions. However, the spatial extent of the economic jurisdiction is an empirical question. Drawing on four survey-based valuation studies, we measure the "relative public good benefit gradient" as a function of residential location from six natural resource public goods. The results indicate commonly used state political jurisdictions reflect an average of 13% of total benefits in the economic jurisdiction, although with a logarithmic form for distance the upper confidence interval of state benefits can include 100% for some species.
JEL-codes: D61 H41 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:uwp:landec:v:76:y:2000:i:2:p:312-321
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