Status Equilibrium for Local Public Good Economies
Working Paper No. 05-W23
Anne van den Nouweland Myrna H. Wooders
ABSTRACT [article]
We introduce a concept of status equilibrium for local public good economies. A status equilibrium specifies one status index for each agent in an economy. These indices determine agents' cost shares in any possible jurisdiction to which the agent might belong. We provide an axiomatic charaterization of status equilibrium using consistency properties.
Keywords and Phrases: Local public goods, status equilibrium, axiomatic characterization
JEL Classification Numbers: H41, D71, D51