Congestion Effects on Endogenous Jurisdictions Formation Models
Type de matériel :
53
This paper analyses the segregative properties of local public goods production. Households living at the localization form a municipality, that will produce a local public good, financed through a proportional income tax. The tax rate is determined by the majority voting rule. Households may leave their municipality for another one that would increase their utility. Starting from Gravel and Thoron’s results, we examine the effects of congestion on urban segregation, that do not modify the necessary and sufficient condition to have every stable jurisdiction structure segregated, at least if congestion effects are not too strong, even though it seems to increase the segregative properties of endogenous jurisdictions formation. Classification JEL : C78 ; D02 ; H73 ; R23
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