A Tiebout theory of public vs private provision of collective goods
研究当人们可以通过迁移选择不同公共品提供方式的社区时,强制性公共提供和自愿私人提供能否共存,发现均衡存在条件与收入极化程度相关。
We study whether `coercive' public provision or voluntary private provision of public goods can survive when individuals who `vote with their feet' can choose between communities that differ in the way that public goods are provided. We obtain the following findings: (i) an equilibrium always exists in which all individuals migrate to the community which uses voluntary provision; (ii) under very robust conditions on preferences and income distribution, an equilibrium exists in which all individuals migrate to the community which uses coercive provision; (iii) `interior' equilibria in which collections of individuals move to both communities exist when income distribution is sufficiently polarized. Such equilibria are shown to be stratified-richer individuals migrate to the community with voluntary provision while poorer individuals reside in the public provision community. In the case where there are two types of wealth endowments, existence of stratified equilibria seems to require a negative trade-off between the wealth ratio of the rich to the poor and the numerical ratio of rich to poor in society.