Why voters may prefer congested public clubs

Article Abstract:

A model which takes into consideration both affluent and impoverished types of people is considered to explain the fact that majority of public facilities for services such as education, medical care, and transportation are shabby and congested despite sufficient taxation. It is also noted that the government has the ability to subsidize private facilities of similar services and is capable of demanding fees at such places. Results indicate that poor people may lower taxes by building second class facilities to prevent the rich from using them and may also profit from subsidies to private facilities they do not make use of.

Public buildings, Welfare economics, Facility management, Facilities management

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Bargaining between benevolent jurisdictions or when delegation induces inefficiencies

Article Abstract:

A model with two jurisdictions, homogenous population and spill-over effects between the jurisdictions, is used to evaluate the effects of bargaining about head taxes and local public goods. Results indicate that designation to charitable jurisdictions will cause distortions away from efficiency in the distribution of consumers concerning local public goods. Such distortions arise from conflicting social and jurisdictional intentions and from the inability of jurisdictions to execute side payments without altering the provision of local public goods or consumer distribution.

Externalities (Economics), Public goods

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On the uses of club theory: preface to the club theory symposium

Article Abstract:

Clubs, as defined by Buchanan (1965), is composed of a group of consumers using a common facility where each individual's utility increases with the size of the said facility. Factors such as admission price, facility size, and number of members each affect consumer or member utility. Such associations are frequently concerned with the supplying of public commodities to its members which involve externalities. In this light, the study of clubs can be pertinent to the study of local governments, macroeconomics, road building, and firms.

Local government, Consumers, Utility theory, Utility functions

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