Econometrica: Apr 1980, Volume 48, Issue 3

Measuring Externalities and Second Best Distortions in the Theory of Local Public Goods<627:MEASBD>2.0.CO;2-Z
p. 627-642

David A. Starrett

A general welfare framework is proposed for examining the behavior of a Tiebout type model in which consumers choose among a variety of communities providing local public services. General expressions are derived for measuring fiscal externalities and the second best nature of Tiebout taxation is explored.

Log In To View Full Content