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Heterogeneous Tiebout Communities with Private Production and Anonymous Crowding
Regional Science and Urban Economics (2013)
  • Jaime Luque, University of Wisconsin - Madison
Abstract
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.
Keywords
  • local public goods; collaborative production; wages; anonymous crowding; visa permits; societal stratification; heterogeneous populated communities; generalized game.
Publication Date
January, 2013
Citation Information
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
Creative Commons License
This work is licensed under a Creative Commons CC_BY-NC-ND International License.