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Heterogeneous Tiebout Communities with Private Production and Anonymous Crowding

Regional Science and Urban Economics (2013)

Jaime Luque

This paper provides a general equilibrium model where jurisdictions offer not only public goods, but also job opportunities. In a context of multiple types of consumers, labor complementarities, and anonymous crowding, heterogeneous populated communities form in equilibrium with an endogenous wage system that is labor-type and jurisdiction-type dependent. Equilibrium jurisdiction structures depend on the relative scarcity of labor types, unlike the situation in Berglas (1976) partial equilibrium analysis. For a large economy, we prove that equilibrium exists and that the set of equilibria is equivalent to the core.

local public goods; collaborative production; wages; anonymous crowding; visa permits; societal stratification; heterogeneous populated communities; generalized game.

Economic Theory, Finance, Political Economy and Public Economics

January, 2013

Jaime Luque. "Heterogeneous Tiebout Communities with Private Production and Anonymous Crowding" Regional Science and Urban Economics Vol. 43 Iss. 1 (2013)
Available at: http://works.bepress.com/luque/2/

Creative Commons License This work is licensed under a Creative Commons CC_BY-NC-ND International License.