Effects of club size in the provision of public goods. Network and congestion effects in the case of the French municipalities |
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Authors: | Alain Guengant Jean-Michel Josselin Yvon Rocaboy |
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Affiliation: | (1) Centre National de la Recherche Scientifique (CREREG) , FR;(2) University of Rennes 1, Faculté des sciences économiques, 7, place Hoche CS 86514, 35065 Rennes cédex, France (e-mail: Jean-Michel.Josselin@univ-rennes1.fr) , FR |
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Abstract: | The article formalizes and measures the impact of club size on the quality of the public good provided to its members. Under
a general framework we describe various functional forms that allow either network or crowding effects. Mechanisms of provision
are that of a political process in which both the demand and the supply sides are considered. Estimations use the whole set
of French municipalities. The supply model performs better than the demand model in the case of small municipalities, while
for large cities the demand model has higher explanatory power. In so far as impact of city size on the quality of club goods
is concerned, crowding does appear, but it does so in different patterns. For small towns marginal congestion first decreases
then increases with population. Marginal congestion is decreasing for cities of intermediate size. For larger cities no significant
effects are observed.
Received: 27 June 2000 / Accepted: 20 August 2001
RID="*"
ID="*" We have received particularly helpful comments from the editor-in-chief and two anonymous referees. We also thank Danièle
Moret-Bailly for her friendly computational assistance. |
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Keywords: | JEL classification: D7 R5 H72 |
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