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Effects of club size in the provision of public goods. Network and congestion effects in the case of the French municipalities

Author

Listed:
  • Alain Guengant

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

  • Jean-Michel Josselin

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

  • Yvon Rocaboy

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

Abstract

The article formalizes and measures the impact of club size on the quality of the public good provided to its members. Under a general framework we describe various functional forms that allow either network or crowding effects. Mechanisms of provision are that of a political process in which both the demand and the supply sides are considered. Estimations use the whole set of French municipalities. The supply model performs better than the demand model in the case of small municipalities, while for large cities the demand model has higher explanatory power. In so far as impact of city size on the quality of club goods is concerned, crowding does appear, but it does so in different patterns. For small towns marginal congestion first decreases then increases with population. Marginal congestion is decreasing for cities of intermediate size. For larger cities no significant effects are observed.

Suggested Citation

  • Alain Guengant & Jean-Michel Josselin & Yvon Rocaboy, 2002. "Effects of club size in the provision of public goods. Network and congestion effects in the case of the French municipalities," Post-Print halshs-00070917, HAL.
    • Handle: RePEc:hal:journl:halshs-00070917
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    Cited by:

    1. Constantino Cronemberger Mendes & Maria da Conceição Sampaio de Sousa, 2004. "Demand For Locally Provided Public Services Within The Median Voter'S Framework: The Case Of The Brazilian Municipalities," Anais do XXXII Encontro Nacional de Economia [Proceedings of the 32nd Brazilian Economics Meeting] 027, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    2. Albert Solé-Ollé & Núria Bosch, 2005. "On the Relationship between Authority Size and the Costs of Providing Local Services: Lessons for the Design of Intergovernmental Transfers in Spain," Public Finance Review, , vol. 33(3), pages 343-384, May.
    3. Constantino Cronemberger Mendes & Maria da Conceição Sampaio de Sousa, 2015. "Demand for Locally Provided Public Services within the Median Voter's Framework: the Case of the Brazilian Municipalities," Discussion Papers 0134, Instituto de Pesquisa Econômica Aplicada - IPEA.
    4. Guy Gilbert & Alain Guengant, 2002. "L'économie publique locale quinze ans après : entre espace et territoire," Revue d'économie régionale et urbaine, Armand Colin, vol. 0(1), pages 157-182.
    5. Constantino Cronemberger Mendes & Maria da Conceicao Sampaio de Sousa, 2006. "Demand for locally provided public services within the median voter's framework: the case of the Brazilian municipalities," Applied Economics, Taylor & Francis Journals, vol. 38(3), pages 239-251.
    6. Marie-Estelle Binet, 2008. "Optimal local taxation and French municipal tax distortions," Applied Economics, Taylor & Francis Journals, vol. 40(3), pages 327-332.
    7. Benoît LE MAUX & Kristýna DOSTÁLOVÁ & Fabio PADOVANO, 2017. "Ideology and Public Policies: A Quasi-Experimental Test of the Hypothesis that Left-Wing Governments Spend More," Economics Working Paper from Condorcet Center for political Economy at CREM-CNRS 2017-01-ccr, Condorcet Center for political Economy.
    8. Benoît Le Maux, 2009. "Governmental behavior in representative democracy: a synthesis of the theoretical literature," Public Choice, Springer, vol. 141(3), pages 447-465, December.
    9. Constantino Cronemberger Mendes & Maria da Conceição Sampaio de Sousa, 2004. "Demand for Locally provided Public Services Within the Median Voter`s Framework: The Case of the Brazilian Municipalities," Discussion Papers 1046, Instituto de Pesquisa Econômica Aplicada - IPEA.
    10. Benoît Le Maux & Kristýna Dostálová & Fabio Padovano, 2020. "Ideology or voters? A quasi-experimental test of why left-wing governments spend more," Public Choice, Springer, vol. 182(1), pages 17-48, January.
    11. Benoît Le Maux & Yvon Rocaboy, 2016. "Competition in fragmentation among political coalitions: theory and evidence," Public Choice, Springer, vol. 167(1), pages 67-94, April.

    More about this item

    Keywords

    congestion; public goods; urban economics; local governments;
    All these keywords.

    JEL classification:

    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • R5 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures

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