Public output demands from alternative congestion functions

Article Abstract:

Three alternatives to the Bergstrom and Goodman - Borcherding and Deacon (BG-BD) specification of the congestion function are proposed. The BG-BD model measures the publicness or congestion parameter of local public goods. However, the model assumes diminishing marginal and a constant elasticity of congestion. The BG-BD model is thus contrasted with a flexible exponential specification and another which assumes data-dependent decreasing or increasing marginal congestion. The BG-BD and the exponential models yielded elasticities of order -1, while the last indicated less congestion and even increasing returns. The BG-BD specification fits the data best. The results indicate that diminishing marginal congestion is more likely, despite arguments to the contrary.

Models, Economic aspects, Population density, Population geography

---

Pigou, Tiebout, property taxation, and the underprovision of local public goods: comment

Article Abstract:

The paper of Zodrow and Mieszkowski (1986) which was published by the Journal of Urban Economics presents a model where alleged 'tax competition' among the independent governments of a federation leads to lower-than-optimal tax rates and public service levels. However, one of the assumptions used by Zodrow and Mieszkowski is problematic. It does not have the meaning that the two assigned to it and a more intuitive result is obtained if this assumption is relaxed. Local taxes and spending levels may be either excessively high or excessively low when local business benefits from spending. Because the Zodrow and Mieszkowski model has become the accepted framework for addressing tax competition issues, it is important to consider this point.

Research, Local taxation, Municipal services

---

Similar abstracts:

• Abstracts: Distributional effects of alternative vehicl pollution control policies. On the income dependence of equivalence scales
• Abstracts: What governments want from international institutions and how they get it. Why did Seattle fail? Globalization and the politics of trade
• Abstracts: Sustainability and the intergenerational distribution of natural resource entitlements. Fiscal effects of foreign aid in a federal system of governance. The case of India
• Abstracts: The income elasticity of demand for housing: evidence from concentration curves. The relation between financial and housing wealth: evidence from Dutch households
• Abstracts: Tom Bradley. A conservative ex-cop takes over San Francisco. Willie Brown: San Francisco's political pro gets put to the test

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.