The Tiebout Hypothesis: On the Existence of Pareto Efficient Competitive Equilibrium

John Conley and Myrna Wooders

Working Papers from University of Toronto, Department of Economics

Abstract: We introduce a model of an local public goods economy with a continuum of agents and jurisdictions with finite population. Under an especially mild condition of boundedness of per capita payoffs we show nonemptiness of the core of the economy. We then demonstrate that the equal treatment core coincides with the set of competitive allocations. Under an additional condition ensuring that all outcomes in the core have the equal treatment property, existence of equilibrium follows from nonemptiness of the core and equivalence of the core to the set of equilibrium outcomes. Our approach provides a new technique for showing existence of equilibrium in economies with a continuum of agents.

JEL-codes: C7 D4 D5 H4 (search for similar items in EconPapers)
Pages: 44 pages
Date: 1998-05-11
New Economics Papers: this item is included in nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://www.economics.utoronto.ca/public/workingPa ... PA-MWOODERS-98-06.ps MainText (application/postscript)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:tor:tecipa:mwooders-98-06

Access Statistics for this paper

More papers in Working Papers from University of Toronto, Department of Economics 150 St. George Street, Toronto, Ontario.
Bibliographic data for series maintained by RePEc Maintainer ().