Interarea cost of living measurement with nonmarket goods: a demand systems approach
Article Abstract:
The significance of controlling for non-market good levels in building cost of living indexes based on a non-linear demand system's parameters is examined. The non-linear system is known as the quadratic expenditure system. Data is used from the 1972-1973 Survey of Consumer Expenditures for the four market good expenditure system, and entails for non-market goods as translating variables. It is shown that market-based indexes and their Laspeyres-type bounds, should be built conditionally on non-market goods levels. It is also found, however, that errors resulting from ignoring non-market goods are generally small. Unconditionally constructed indexes, however, vary dramatically from the conditional ones at both the intra-metropolitan and inter-city levels.
Publication Name: Journal of Urban Economics
Subject: Government
ISSN: 0094-1190
Year: 1987
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Local public goods, risk sharing and private information in federal systems
Article Abstract:
Issues regarding the effect of information asymmetries on the optimal design of interregional insurance schemes and the allocation of local public goods are discussed. The presence of informational asymmetries is not in itself sufficient to deny federations the attainment of efficiency or egalitarian goals, however, the incentive compatible optimum may violate participation constraints.
Publication Name: Journal of Urban Economics
Subject: Government
ISSN: 0094-1190
Year: 2000
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On the measurement of congestion in the provision of local public goods
Article Abstract:
Evidence is presented to support the assertion that there is an upward bias in current estimates of the extent of local public goods congestion. The assertion is that the positive correlation seen between population size and public expenditure reflects to a large degree the broader service range found in more populous areas, not just a high tendency of those goods to become congested.
Publication Name: Journal of Urban Economics
Subject: Government
ISSN: 0094-1190
Year: 1988
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