A Theory of User-Fee Competition
Journal
Journal of Public Economics
ISSN
0047-2727
ISSN-Digital
1879-2316
Type
journal article
Date Issued
2007-04-01
Author(s)
Fuest, Clemens
Abstract
We develop a two-region model where the decentralized provision of spillover goods and other public expenditures is financed by means of user fees. We show that a decentralized solution tends to be inefficient. If the regional spillover goods are substitutes, user fees tend to be inefficiently low, whereas they tend to be inefficiently high if the spillover goods are complements.
Language
English
HSG Classification
not classified
Refereed
No
Publisher
Elsevier
Publisher place
Amsterdam
Volume
91
Number
3-4
Start page
497
End page
509
Pages
13
Subject(s)
Division(s)
Eprints ID
45718