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Local government co-financing of the central government's transport infrastructure investment
Swedish National Road and Transport Research Institute, Society, environment and transport, Transport economics.ORCID iD: 0000-0001-7864-5982
Swedish National Road and Transport Research Institute, Society, environment and transport, Transport economics.
2019 (English)In: Economics of Transportation, ISSN 2212-0122, E-ISSN 2212-0130, Vol. 18, p. 40-49Article in journal (Refereed) Published
Abstract [en]

We study two districts’ voluntary co-financing of a centrally provided public good, e.g., transport infrastructure. Outcomes are compared to a surplus-maximizing level of public good provision. We show that both co-financing and lobbying raise the amount of public good provided. Co-financing and lobbying are substitutes. Co-financing (or co-financing combined with lobbying) raises the provision of the public good to a higher level than lobbying alone. Co-financing can thus reduce rent-seeking. Finally, we show that under uncertainty about district type (high or low benefit), co-financing combined with lobbying can be used to find and retain a separating equilibrium.

Place, publisher, year, edition, pages
Elsevier Ltd , 2019. Vol. 18, p. 40-49
Keywords [en]
Transport infrastructure, Financing, Local authority, Government (national), Investment
National Category
Economics
Research subject
00 Road: General works, surveys, comprehensive works, 02 Road: Economics
Identifiers
URN: urn:nbn:se:vti:diva-13720DOI: 10.1016/j.ecotra.2019.03.001Scopus ID: 2-s2.0-85064006477OAI: oai:DiVA.org:vti-13720DiVA, id: diva2:1313226
Available from: 2019-05-02 Created: 2019-05-02 Last updated: 2019-06-28Bibliographically approved

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Jussila Hammes, JohannaMandell, Svante

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CiteExportLink to record
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  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf