Econometrica

Journal Of The Econometric Society

An International Society for the Advancement of Economic
Theory in its Relation to Statistics and Mathematics

Edited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262

Econometrica: Apr, 1980, Volume 48, Issue 3

Measuring Externalities and Second Best Distortions in the Theory of Local Public Goods

https://www.jstor.org/stable/1913127
p. 627-642

David A. Starrett

A general welfare framework is proposed for examining the behavior of a Tiebout type model in which consumers choose among a variety of communities providing local public services. General expressions are derived for measuring fiscal externalities and the second best nature of Tiebout taxation is explored.


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