Heterogeneous Tiebout communities with private production and anonymous crowding

Jaime Luque

UC3M Working papers. Economics from Universidad Carlos III de Madrid. Departamento de Economía

Abstract: his paper examines, in the context of a multiple types of consumers, a set of necessary and sufficient conditions under which equilibrium and optimum exist, and involve mixing types of consumers in jurisdictions. Pricing includes visa permits for entry. Following Berglas (1976), we assume anonymous crowding and complementarities in production. For a large economy, we prove existence of equilibrium and the first and second welfare theorems. Our simultaneous optimization approach provides a new technique for showing existence of equilibrium in local public good economies with local production and a continuum of agents.

Keywords: Local; public; goods; Collaborative; production; Wages; Anonymous; crowding; Visa; permits; Societal; stratification; Heterogeneous; Tiebout; communities; Generalized; game (search for similar items in EconPapers)
JEL-codes: C70 D71 H40 R13 (search for similar items in EconPapers)
Date: 2011-09
New Economics Papers: this item is included in nep-pbe
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Persistent link: https://EconPapers.repec.org/RePEc:cte:werepe:we1028

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