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Economies of City Size in a Price Searcher Model of Local Government

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  • Gonzalez, Rodolfo A
  • Mehay, Stephen L

Abstract

Previous research in local public finance has examined scale economies and publicness issues separately. This paper integrates consumption and production economies utilizing a bureaucracy model of local government. The model predicts the net effects of scale and consumption economies via the estimated population elasticity in expenditure demand functions. The empirical results tend to confirm the results of previous studies that local goods are private in nature and are produced under conditions of constant cost.

Suggested Citation

  • Gonzalez, Rodolfo A & Mehay, Stephen L, 1987. "Economies of City Size in a Price Searcher Model of Local Government," Public Finance = Finances publiques, , vol. 42(2), pages 236-249.
    • Handle: RePEc:pfi:pubfin:v:42:y:1987:i:2:p:236-49
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    Cited by:

    1. Austin, D. Andrew, 1998. "A positive model of special district formation," Regional Science and Urban Economics, Elsevier, vol. 28(1), pages 103-122, January.
    2. Julie Berry Cullen & Steven D. Levitt, 1999. "Crime, Urban Flight, And The Consequences For Cities," The Review of Economics and Statistics, MIT Press, vol. 81(2), pages 159-169, May.
    3. Rodolfo Gonzalez & Roger Folsom & Stephen Mehay, 1989. "Bureaucracy, publicness and local government expenditures revisited: Comment," Public Choice, Springer, vol. 62(1), pages 71-77, July.

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