Boettke, Peter and Coyne, Christopher and Leeson, Peter (2011): Quasimarket failure. Forthcoming in: Public Choice
Download (89kB) | Preview
The efficiency of “quasimarkets”—decentralized public goods provision subjected to Tiebout competition—is a staple of public choice conventional wisdom. Yet in the 1990s a countermovement in political economy called “neoconsolidationism” began to challenge this wisdom. The neoconsolidationists use the logic of government failure central to public choice economics to argue that quasimarkets fail and that jurisdictional consolidation is a superior way to supply public goods and services in metropolitan areas. Public choice scholars have largely ignored the neoconsolidationists’ challenge. This paper brings that challenge to public choice scholars’ attention with the hope of encouraging responses. It also offers some preliminary thoughts about the directions such responses might take.
|Item Type:||MPRA Paper|
|Original Title:||Quasimarket failure|
|Keywords:||Public Goods; Quasimarkets|
|Subjects:||D - Microeconomics > D7 - Analysis of Collective Decision-Making > D73 - Bureaucracy; Administrative Processes in Public Organizations; Corruption
H - Public Economics > H4 - Publicly Provided Goods > H41 - Public Goods
H - Public Economics > H4 - Publicly Provided Goods > H44 - Publicly Provided Goods: Mixed Markets
|Depositing User:||Peter Boettke|
|Date Deposited:||30. Aug 2011 16:14|
|Last Modified:||16. Feb 2013 10:10|
Aligica, Paul, and Peter J. Boettke. 2009. Challenging Institutional Analysis of Development: The Bloomington School. New York: Routledge.
Beito, David T., Peter Gordon, and Alexander Tabarrok, eds. 2002. The Voluntary City: Choice, Community, and Civil Society. Ann Arbor: University of Michigan Press.
Bish, Robert. 1971. The Political Economy of Metropolitan Areas. Chicago: Markham.
Bish, Robert. 1999. “Federalist Theory and Polycentricity: Learning from Local Governments.” In D. P. Racheter and R. E. Wagner, eds., Limiting Leviathan. Cheltenham, UK: Edward Elgar, pp. 203-220.
Boettke, Peter J.. 1993. Why Perestroika Failed: The Politics and Economics of Socialist Transformation. New York: Routledge.
Buchanan, James M. 1965. “An Economic Theory of Clubs,” Economica 32: 1-14.
Buchanan, James M. 1969. Cost and Choice. Chicago: University of Chicago Press.
Buser, Whitney D. 2011. “The Impact of Public Sector Decentralization on Income Levels across High-Income OECD Countries: An Institutional Approach.” Public Choice [this issue].
Carr, Jered B., and Feiock, Richard C., eds. 2003. Reshaping the local government landscape: City-county consolidation and its alternatives. Armonk, New York: M.E. Sharpe.
Carr, Jered B., and Richard C. Feiock. 1999. “Metropolitan Government and Economic Development,” Urban Affairs Review 34: 476-488.
DeHoog, Ruth H., David Lowery, and William Lyons. 1990. “Citizen Satisfaction and Local Government: A Test of Individual, Jurisdictional, and City Specific Explanations.” Journal of Politics 52: 807-837.
Feld, Lars P., Horst Zimmerman, and Thomas Doering. 2003. “Federalism, Decentralization, and Economic Growth.” Mimeo.
Feld, Lars P., and Tarik Dede. 2004. “Fiscal Federalism and Economic Growth: Cross Country Evidence for OECD Countries.” Mimeo.
Feld, Lars P., Thushyanthan Baskaran, and Jan Schnellenbach. 2008. “Fiscal Federalism, Decentralization and Economic Growth: A Meta-Analysis.” Paper presented at the 64th Congress of the International Institute of Public Finance. August 22-25, 2008, Maastricht, The Netherlands.
Foldvary, Fred. 1994. Public Goods and Private Communities: The Market Provision of Social Services. Cheltenham, UK: Edward Elgar.
Hill, Richard Child. 1974. “Separate and Unequal: Governmental Inequality in the Metropolis.” American Political Science Review 68: 1557-1568.
Hill, Edward W., Harold L. Wolman, and Coit Cook Ford III. 1995. “Can Suburbs Survive Without Their Cities: Examining the Suburban Dependence Hypothesis.” Urban Affairs Review 31: 147-174.
Holcombe, Randall G., and DeEdgra W. Williams. 2011. “The Cartelization of Local Goverments.” Public Choice [this issue].
Leeson, Peter T. 2011. “Government, Clubs, and Constitutions.” Mimeo.
Lowery, David. 1998. “Consumer Sovereignty and Quasi-Market Failure.” Journal of Public Administration Research and Theory 8: 137-172.
Lowery, David. 1999. “Answering the Public Choice Challenge: A Neoprogressive Research Challenge.” Governance: An International Journal of Policy and Administration 12: 29-55.
Lowery, David. 2000. “A Transaction Costs Model of Metropolitan Governance: Allocation vs. Redistribution in Urban America.” Journal of Public Administration Research and Theory 10: 49-78.
Lowery, David. 2001. “Metropolitan Governance Structures from a Neoprogressive Perspective.” Swiss Political Science Review 7: 130–136.
McGinnis, Michael. 1999. “Introduction.” In: Michael D. McGinnis, ed., Polycentricity and Local Public Economies. Ann Arbor: University of Michigan Press, pp. 1-27.
Neiman, Max. 1976. “Social Stratification and Government Inequality.” American Political Science Review 70: 149-154. Nelson, Robert H. 2005. Private Neighborhoods and the Transformation of Local Government. Washington, DC: Urban Institute Press.
Nutter, G. Warren. 1983. Political Economy and Freedom. Indianapolis: Liberty Fund.
Oates, Wallace E. 1972. Fiscal Federalism. New York: Harcourt Brace Jovanovich.
Oliver, J. Eric. 2001. Democracy in Suburbia. Princeton: Princeton University Press.
Ostrom, Elinor. 1972 . “Metropolitan Reforms: Propositions Derived from Two Traditions.” In: Michael D. McGinnis, ed., Polycentricity and Local Public Economies. Ann Arbor: University of Michigan Press, pp. 139-160.
Ostrom, Elinor. 1983a. “A Public Choice Approach to Metropolitan Institutions: Structures, Incentives and Performance.” Social Science Journal 20: 79-96.
Ostrom, Elinor. 1983b. “The Social Stratification-Government Inequality Thesis Explored.” Urban Affairs Quarterly 19: 91-112.
Ostrom, Elinor, and Roger Parks. 1999. “Neither Gargantua nor the Land of Lilliputs.” In: Michael D. McGinnis, ed., Polycentricity and Local Public Economies. Ann Arbor: University of Michigan Press, pp. 284-305.
Ostrom, Vincent. 1973 . The Intellectual Crisis in American Public Administration. Tuscalosa, AL: University of Alabama Press.
Ostrom, Vincent. 1972 . “Polycentricity (Part 1).” In: Michael D. McGinnis, ed., Polycentricity and Local Public Economies. Ann Arbor: University of Michigan Press, pp. 52-74.
Ostrom, Vincent, Charles M. Tiebout, and Robert Warren. 1961. “The Organization of Government in Metropolitan Areas: A Theoretical Inquiry.” American Political Science Review 55: 831-842.
Parks, Roger B., and Ronald J. Oakterson 1989. “Metropolitan Organization and Governance: A Local Political Economy Approach.” Urban Affairs Quarterly 25: 18-29.
Parks, Roger B., and Ronald J. Oakterson 2000. “Regionalism, Localism and Metropolitan Governance: Suggestions from the Research Program on Local Public Economics.” State and Local Government Review 32: 169-179.
Rowley, Charles K. 1997. “Donald Wittman’s The Myth of Democratic Failure.” Public Choice 92: 15-26.
Schneider, Mark. 1986. “Fragmentation and the Growth of Local Government.” Public Choice 48: 255-263.
Schneider, Mark. 1989. “Intermunicipal Competition, Budget-Maximizing Bureaucrats, and the Level of Suburban Competition.” American Journal of Political Science 33: 612-628.
Schneider, Mark, and Paul Teske. 1993. “The Progrowth Entrepreneur in Local Government.” Urban Affairs Quarterly 29: 316-327.
Schneider, Mark, Paul Teske, and Michael Mintrom. 1995. Public Entrepreneurs: Agents for Change in American Government. Princeton: Princeton University Press.
Stigler, George. 1962. “The Tenable Range of Functions of Local Government.” In: Edmund Phelps, ed., Private Wants and Public Needs. New York: W.W. Norton.
Teske, Paul, Mark Schneider, Michael Mintrom, and Samuel Best. 1993. “Establishing the Micro Foundations of a Macro Theory: Information, Movers, and the Competitive Local Market for Public Goods.” American Political Science Review 87: 702-713.
Tiebout, Charles M. 1956. “A Pure Theory of Local Expenditures,” Journal of Political Economy 64: 416-424.
Wagner, Richard. 2007. Fiscal Sociology and the Theory of Public Finance. Cheltenham, UK: Edward Elgar.
Wilson, Woodrow. 1885 . Congressional Government: A Study of American Politics. New York: Meridan Books.
Wittman, Donald. 1989. “Why Democracies Produce Efficient Results.” Journal of Political Economy 97: 1395-1424.
Wittman, Donald. 1995. The Myth of Democratic Failure: Why Political Institutions are Efficient. Chicago: University of Chicago Press.