Heterogeneous Tiebout communities with private production and anonymous crowding

Abstract

This paper examines, in the context of a multiple types of consumers, a set of necessary and sufficient conditions under which equilibrium and optimum exist, and involve mixing types of consumers in jurisdictions. Pricing includes visa permits for entry. Following Berglas (1976), we assume anonymous crowding and complementarities in production. For a large economy, we prove existence of equilibrium and the first and second welfare theorems. Our simultaneous optimization approach provides a new technique for showing existence of equilibrium in local public good economies with local production and a continuum of agents.JEL Classification: C70, D71, H40, R13.

Endogenous formation of security exchanges

“…See The Economist, March 25, 2006 (http://www.economist.com/node/6978712): "Liquidity and technology will inevitably make trading a natural monopoly". 11 Cole and Prescott (1997), Ellickson et al (2001), Luque (2013), and Wooders (1980Wooders ( ,1997 require bounded club sizes. In contrast, Wooders (1989) and Allouch and Wooders (2008) permit both is satisfied.…”

Urban Land Economics

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Entrepreneurial land developers: Joint production, local externalities, and mixed housing developments

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