Regionalism Meets Samuelson

Local Production of a National Public Good

Dados Bibliográficos

ID9724575
AutoresJan K Brueckner (0000-0001-9580-1924, University of California, Irvine), Steven G Craig (0000-0002-2487-9916, University of Houston), Kangoh Lee (0000-0003-3116-9813, San Diego State University)
Ano2021
Volume88
Fascículo349
Páginas1-31
Data de publicação2021-01-01
Peer ReviewedSim
Open AccessSim
TipoARTICLE
PeriódicoEconomica (JOURNAL)
Identificadores do periódicoISSN: 0013-0427 • E-ISSN: 1468-0335
EditoraWiley (PUBLISHER • GB)
DOI10.1111/ecca.12348
OpenAlexW3035898706
IdiomaEN
Referências citadas24

This paper studies an overlooked phenomenon in the provision of public goods, namely local production of a national public good, such as the manufacture of fighter planes (which contribute to national defence) in many different jurisdictions across a country. Because local production of the national good raises local incomes, each jurisdiction seeks to raise its share of the good's production. A subset of jurisdictions then forms a minimum winning coalition, which offers equal production shares to its members and smaller (possibly zero) shares to non‐members, while choosing the provision level of the national good. The outcome is inefficient, with production inefficiently concentrated and the public good also overprovided (because income benefits reduce the good's perceived marginal cost). Empirical results confirm the prediction that the location of production is important in determining Congressional support for federal programme spending

Business · Economics · Jurisdiction · Macroeconomics · Market economy · Measures of national income and output · Microeconomics · Political science · Production (economics) · Public economics · Public good · Regionalism (politics) · Economic Policies and Impacts · Fiscal Policy and Economic Growth · Law · Local Government Finance and Decentralization