Household Mobility and the Moderate Leviathan: Efficiency and Decentralization

Journal article


Publication Details

Author(s): Wrede M
Journal: Regional Science and Urban Economics
Publisher: Elsevier
Publication year: 1998
Volume: 28
Pages range: 315-328
ISSN: 0166-0462
Language: English


Abstract


Household mobility forces regional welfare maximizing governments – which are only interested in the well-being of their own residents – to provide local public goods efficiently

and to make interregional transfers which lead to a socially efficient population distribution.

On the one hand, this paper shows that in the presence of perfect household mobility, policy

makers, which are neither entirely benevolent nor wholly self-serving, use their instruments

to achieve internal and external efficiency even if the number of regions is small. On the

other hand, it is shown that regional moderate Leviathans choose an inefficient amount of

‘‘wasteful’’ expenditure.



FAU Authors / FAU Editors

Wrede, Matthias Prof. Dr.
Lehrstuhl für Volkswirtschaftslehre, insbesondere Sozialpolitik


How to cite

APA:
Wrede, M. (1998). Household Mobility and the Moderate Leviathan: Efficiency and Decentralization. Regional Science and Urban Economics, 28, 315-328. https://dx.doi.org/10.1016/S0166-0462(97)00037-9

MLA:
Wrede, Matthias. "Household Mobility and the Moderate Leviathan: Efficiency and Decentralization." Regional Science and Urban Economics 28 (1998): 315-328.

BibTeX: 

Last updated on 2018-16-06 at 10:10