Efficient Structure of Provision for Emergency Public Services

Elena Inarra, Ana Mauleon and Vincent Vannetelbosch

No 1999013, Discussion Papers (REL - Recherches Economiques de Louvain) from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES)

Abstract: We consider an economy in which a central government has to decide on the provision and location of an emergency public service the quality of which diminishes with distance. The emergency service has to attend a group of municipalities geographically located in a star-tree-graph. We derive the optimal location and provision, as well as the Lindahl prices for the emergency service. Also, we determine the minimum quality of service that makes efficient the existence of a unique provider for the whole economy. Conversely given any level of quality of service we identify the stable and efficient structure of provision.

JEL-codes: C71 H41 R1 (search for similar items in EconPapers)
Pages: 15
Date: 1999-03-01
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Persistent link: https://EconPapers.repec.org/RePEc:ctl:louvre:1999013

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