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Simple Local Public Goods Economy with Interjurisdictional Trade ∗

By  and Hideo Konishi and Hideo Konishi


This note shows that if commodities are tradable across jurisdictions, then it may be efficient to have heterogeneously sized jurisdictions, even if (i) consumers are identical, (ii) there is one private good and one public good, (iii) utility and production functions are not affected by population (within the relevant range of sizes of jurisdictions)

Year: 2001
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