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Local government co-financing of the central government's transport infrastructure investment
Economics of Transportation ( IF 2.2 ) Pub Date : 2019-04-02 , DOI: 10.1016/j.ecotra.2019.03.001
Johanna Jussila Hammes , Svante Mandell

We study two districts’ voluntary co-financing of a centrally provided public good, e.g., transport infrastructure. Outcomes are compared to a surplus-maximizing level of public good provision. We show that both co-financing and lobbying raise the amount of public good provided. Co-financing and lobbying are substitutes. Co-financing (or co-financing combined with lobbying) raises the provision of the public good to a higher level than lobbying alone. Co-financing can thus reduce rent-seeking. Finally, we show that under uncertainty about district type (high or low benefit), co-financing combined with lobbying can be used to find and retain a separating equilibrium.



中文翻译:

地方政府共同出资中央政府的交通基础设施投资

我们研究了两个地区对中央提供的公共物品(例如交通基础设施)的自愿联合供资。将结果与公共物品提供最大化的盈余水平进行比较。我们表明共同筹资和游说都增加了提供的公共物品的数量。共同供资和游说是替代品。与单独进行游说相比,共同筹资(或与游说相结合的共同筹资)将公共物品的提供提高到更高的水平。因此,共同筹资可以减少寻租活动。最后,我们表明,在关于地区类型(高收益或低收益)的不确定性下,联合融资与游说相结合可以用来寻找并保持分离的均衡。

更新日期:2019-04-02
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