Capitalization, Decentralization, and Intergenerational Spillovers in a Tiebout Economy with a Durable Public Good
John Conley (),
Robert Driskill and
Ping Wang ()
No 17-00003, Vanderbilt University Department of Economics Working Papers from Vanderbilt University Department of Economics
We consider an overlapping generations model with a Durable Local Public Good (DLPG). We establish a Tiebout Theorem (equilibrium exists and is first best) as well as a Second Welfare Theorem in this dynamic DLPG economy. We de...ne conditions under which local provision of durable public goods results in the full internalization of the intergenerational spillovers that durability entails. In contrast, when durable public goods are provided by the national government, internalization does not take place and underprovision of public goods results. This sets up an institutional tradeoff between national and local provision of public goods that balances the relative strength of intergenerational and interjurisdictional spillovers.
Keywords: Durable Local Public Goods; Capitalization and Intergenerational Spillover E¤ects; Dynamic Tiebout Equilibrium; Welfare Analysis. (search for similar items in EconPapers)
JEL-codes: H4 D9 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Journal Article: Capitalization, decentralization, and intergenerational spillovers in a Tiebout economy with a durable public good (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:van:wpaper:vuecon-sub-17-00003
Access Statistics for this paper
More papers in Vanderbilt University Department of Economics Working Papers from Vanderbilt University Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by John P. Conley ().