Household Mobility and the Moderate Leviathan: Efficiency, Decentralization, and Population size

Autor/Author:

Matthias Wrede

Titel/Title:

Household Mobility and the Moderate Leviathan: Efficiency, Decentralization, and Population size

 

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Jahr/Year:

August 1996

Zusammenfassung/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. Finally, the role of the size of population in the moderate Leviathan's decision process is considered.

Schlüsselworte/Keywords:

Decentralization, Leviathan, Household mobility

JEL:

H70, H77

Publiziert in/Published in:

Volkswirtschaftliche Diksussionsbeiträge 77, Universität Bamberg

Korrespondenzadresse des Autors/Correspondal address of the author:

Dr. Matthias Wrede
Department of Economics
University of Bamberg
D-96045 Bamberg

E-mail:

matthias.wrede(at)sowi.uni-bamberg.de