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Author:Fuest, C.
Kolmar, M.
Title:A theory of user-fee competition
Journal:Journal of Public Economics
2007 : APR, VOL. 91:3-4, p. 497-509
Index terms:public goods
user charges
Language:eng
Abstract:The authors of this article develop a two-region model where the decentralized provision of spillover goods and other public expenditures is financed by means of user fees. Article shows that a decentralizes solution tends to be inefficient. Used fees tend to be inefficiently low, if the regional spillover goods are substitutes and inefficiently high, if the spillover goods are complements.
SCIMA record nr: 264306
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