Econometrica: Apr 1980, Volume 48, Issue 3
Measuring Externalities and Second Best Distortions in the Theory of Local Public Goods
https://doi.org/0012-9682(198004)48:3<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