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  13.04.2015 - [SEM] Seminario di Economia

SEMINARIO DI ECONOMIA

GIOVEDI’ 16 APRILE ALLE ORE 16:00
nell’aula seminari al primo piano pal. C

Giuseppe Di Liddo e Michele Giuranno
Terranno un seminario dal titolo:

Rent seeking, yardstick competition and inter-municipal cooperation

Abstract - This paper addresses the issue of inter-jurisdictional cooperation comparing the rent-seeking equilibrium between local incumbents with and without cooperation. The analysis considers municipalities that differ in their cost of provision. We study the impact of cooperation on the quality of the joint provision of local public goods and services. Our main result suggests that cost disparities between municipalities bias the yardstick competition and discourage cooperation. Furthermore, cost savings due to cooperation are not always an incentive to cooperate in the presence of fiscal disparities.



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