IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/33068.html
   My bibliography  Save this paper

Quasimarket failure

Author

Listed:
  • Boettke, Peter
  • Coyne, Christopher
  • Leeson, Peter

Abstract

The efficiency of “quasimarkets”—decentralized public goods provision subjected to Tiebout competition—is a staple of public choice conventional wisdom. Yet in the 1990s a countermovement in political economy called “neoconsolidationism” began to challenge this wisdom. The neoconsolidationists use the logic of government failure central to public choice economics to argue that quasimarkets fail and that jurisdictional consolidation is a superior way to supply public goods and services in metropolitan areas. Public choice scholars have largely ignored the neoconsolidationists’ challenge. This paper brings that challenge to public choice scholars’ attention with the hope of encouraging responses. It also offers some preliminary thoughts about the directions such responses might take.

Suggested Citation

  • Boettke, Peter & Coyne, Christopher & Leeson, Peter, 2011. "Quasimarket failure," MPRA Paper 33068, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:33068
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/33068/1/MPRA_paper_33068.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Rowley, Charles K, 1997. "Donald Wittman's The Myth of Democratic Failure: Review Article," Public Choice, Springer, vol. 92(1-2), pages 15-26, July.
    2. Mark Schneider, 1986. "Fragmentation and the growth of local government," Public Choice, Springer, vol. 48(3), pages 255-263, January.
    3. Wittman, Donald, 1989. "Why Democracies Produce Efficient Results," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1395-1424, December.
    4. Hill, Richard Child, 1974. "Separate and Unequal: Governmental Inequality in the Metropolis," American Political Science Review, Cambridge University Press, vol. 68(4), pages 1557-1568, December.
    5. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64(5), pages 416-416.
    6. Randall Holcombe & DeEdgra Williams, 2011. "The cartelization of local governments," Public Choice, Springer, vol. 149(1), pages 65-74, October.
    7. Richard E. Wagner, 2007. "Fiscal Sociology and the Theory of Public Finance," Books, Edward Elgar Publishing, number 12713.
    8. Fred E. Foldvary, 1994. "Public Goods And Private Communities," Books, Edward Elgar Publishing, number 167.
    9. Leeson, Peter T., 2011. "Government, clubs, and constitutions," Journal of Economic Behavior & Organization, Elsevier, vol. 80(2), pages 301-308.
    10. Ostrom, Vincent & Tiebout, Charles M. & Warren, Robert, 1961. "The Organization of Government in Metropolitan Areas: A Theoretical Inquiry," American Political Science Review, Cambridge University Press, vol. 55(4), pages 831-842, December.
    11. Thushyanthan Baskaran & Lars P. Feld, 2013. "Fiscal Decentralization and Economic Growth in OECD Countries," Public Finance Review, , vol. 41(4), pages 421-445, July.
    12. Teske, Paul & Schneider, Mark & Mintrom, Michael & Best, Samuel, 1993. "Establishing The Micro Foundations of a Macro Theory: Information, Movers, and the Competitive Local Market for Public Goods," American Political Science Review, Cambridge University Press, vol. 87(3), pages 702-713, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jennifer Murtazashvili & Ilia Murtazashvili, 2020. "Wealth-destroying states," Public Choice, Springer, vol. 182(3), pages 353-371, March.
    2. Lucas, David S. & Fuller, Caleb S. & Piano, Ennio E., 2018. "Rooking the state," International Review of Law and Economics, Elsevier, vol. 55(C), pages 12-20.
    3. Peter J. Boettke & Rosolino A. Candela, 2021. "János Kornai, the Austrians, and the political and economic analysis of socialism," Public Choice, Springer, vol. 187(1), pages 85-97, April.
    4. Alexander Salter, 2015. "Calhoun’s concurrent majority as a generality norm," Constitutional Political Economy, Springer, vol. 26(3), pages 375-390, September.
    5. Liya Palagashvili, 2018. "African chiefs: comparative governance under colonial rule," Public Choice, Springer, vol. 174(3), pages 277-300, March.
    6. Glenn Furton & Adam Martin, 2019. "Beyond market failure and government failure," Public Choice, Springer, vol. 178(1), pages 197-216, January.
    7. Pennington, Mark, 2013. "Elinor Ostrom and the robust political economy of common-pool resources," Journal of Institutional Economics, Cambridge University Press, vol. 9(4), pages 449-468, December.
    8. Emily Skarbek, 2014. "The Chicago Fire of 1871: a bottom-up approach to disaster relief," Public Choice, Springer, vol. 160(1), pages 155-180, July.
    9. Ilia Murtazashvili & Ennio E. Piano, 2019. "Governance of shale gas development: Insights from the Bloomington school of institutional analysis," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 32(2), pages 159-179, June.
    10. Harris,Colin & Cai,Meina & Murtazashvili,Ilia & Murtazashvili,Jennifer Brick, 2020. "The Origins and Consequences of Property Rights," Cambridge Books, Cambridge University Press, number 9781108969055, January.
    11. Degli Esposti, Sara & Pavone, Vincenzo, 2019. "Oocyte provision as a (quasi) social market: Insights from Spain," Social Science & Medicine, Elsevier, vol. 234(C), pages 1-1.
    12. Dean Stansel, 2012. "Competition, knowledge, and local government," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 25(3), pages 243-253, September.
    13. Vlad Tarko & Andrew Farrant, 2019. "The efficiency of regulatory arbitrage," Public Choice, Springer, vol. 181(1), pages 141-166, October.
    14. Salter, Alexander William, 2015. "Rights to the Realm: Reconsidering Western Political Development," American Political Science Review, Cambridge University Press, vol. 109(4), pages 725-734, November.
    15. Daniel Pop & Roxana Radu, 2013. "Challenges to Local Authorities under EU Structural Funds: Evidence from Mixed Quasi-markets for Public Service Provision in Romania," Journal of Common Market Studies, Wiley Blackwell, vol. 51(6), pages 1108-1123, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Richard Wagner, 2011. "Municipal corporations, economic calculation, and political pricing: exploring a theoretical antinomy," Public Choice, Springer, vol. 149(1), pages 151-165, October.
    2. Salter, Alexander William, 2015. "Rights to the Realm: Reconsidering Western Political Development," American Political Science Review, Cambridge University Press, vol. 109(4), pages 725-734, November.
    3. Richard E. Wagner, 2012. "Deficits, Debt, and Democracy," Books, Edward Elgar Publishing, number 14477.
    4. Alexander William Salter, 2016. "Political Property Rights and Governance Outcomes: A Theory of the Corporate Polity," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 31(Winter 20), pages 1-20.
    5. Dean Stansel, 2012. "Competition, knowledge, and local government," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 25(3), pages 243-253, September.
    6. Lee Hachadoorian, 2024. "Jurisdictional homogeneity and coterminous local government borders: a comparison of counties in New Jersey and New York State," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 73(3), pages 1045-1067, October.
    7. Trent J. MacDonald, 2019. "The Political Economy of Non-Territorial Exit," Books, Edward Elgar Publishing, number 18871.
    8. Buchmann, Marius, 2017. "The need for competition between decentralized governance approaches for data exchange in smart electricity grids—Fiscal federalism vs. polycentric governance," Journal of Economic Behavior & Organization, Elsevier, vol. 139(C), pages 106-117.
    9. Michael Makovi, 2019. "Government vs. Governance: Libertarianism and Private Communities," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 34(Spring 20), pages 39-57.
    10. Eric Charmes, 2009. "On the Residential `Clubbisation' of French Periurban Municipalities," Urban Studies, Urban Studies Journal Limited, vol. 46(1), pages 189-212, January.
    11. ., 2019. "Economic theory of non-territorial unbundling," Chapters, in: The Political Economy of Non-Territorial Exit, chapter 1, pages 14-38, Edward Elgar Publishing.
    12. Alexander William Salter & Andrew T. Young, 2019. "Polycentric Sovereignty: The Medieval Constitution, Governance Quality, and the Wealth of Nations," Social Science Quarterly, Southwestern Social Science Association, vol. 100(4), pages 1241-1253, June.
    13. Matthew Lee Howell, 2014. "The Logic of Urban Fragmentation: Organisational Ecology and the Proliferation of American Cities," Urban Studies, Urban Studies Journal Limited, vol. 51(5), pages 899-916, April.
    14. Holcombe, Randall G., 1998. "Tax Policy From a Public Choice Perspective," National Tax Journal, National Tax Association;National Tax Journal, vol. 51(2), pages 359-371, June.
    15. Liya Palagashvili, 2018. "African chiefs: comparative governance under colonial rule," Public Choice, Springer, vol. 174(3), pages 277-300, March.
    16. Marius Buchmann, 2016. "Information Management in Smart Grids - the need for decentralized governance approaches," Bremen Energy Working Papers 0025, Bremen Energy Research.
    17. Alexander William Salter & Andrew T. Young, 2018. "Medieval representative assemblies: collective action and antecedents of limited government," Constitutional Political Economy, Springer, vol. 29(2), pages 171-192, June.
    18. Ilia Murtazashvili & Ennio E. Piano, 2019. "Governance of shale gas development: Insights from the Bloomington school of institutional analysis," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 32(2), pages 159-179, June.
    19. David Lowery, 2013. "Remembering Vincent Ostrom: unhorsing a dominant paradigm," Public Choice, Springer, vol. 154(3), pages 163-171, March.

    More about this item

    Keywords

    Public Goods; Quasimarkets;

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H44 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Goods: Mixed Markets

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:33068. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.