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Centralized and decentralized provision of public goods

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  • Feidler, Janos
  • Staal, Klaas

Abstract

We model the trade-off between centralized and decentralized decision making over the provision of local public goods. Centralized decisions are made in a legislature of locally elected representatives, and this creates a conflict of interest between citizens in different jurisdictions. The legislature can be self-interested or benevolent and this can result in either efficient, excessive or misallocative provision of public goods. Decisions are inuenced by spillover effects and differences in jurisdictionalsize. Furthermore, we look at the incentives for centralization.

Suggested Citation

  • Feidler, Janos & Staal, Klaas, 2008. "Centralized and decentralized provision of public goods," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 241, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    • Handle: RePEc:trf:wpaper:241
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    File URL: https://epub.ub.uni-muenchen.de/13311/1/241.pdf
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    References listed on IDEAS

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    Cited by:

    1. Martin Gregor & Lenka Stastna, 2012. "The decentralization tradeoff for complementary spillovers," Review of Economic Design, Springer;Society for Economic Design, vol. 16(1), pages 41-69, March.

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    More about this item

    Keywords

    decentralization; local public goods;

    JEL classification:

    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
    • P51 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems

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