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A Test for Efficiency in the Supply of Public Goods

  • Author(s): Bergstrom, Ted
  • Roberts, Judith
  • Rubinfeld, Daniel
  • Shapiro, Perry
  • et al.
Abstract

This paper conducts an empirical test of whether local governments spend more or less than a Pareto optimal amount on local public goods. Our procedure is to check whether the Samuelson first order conditions ) for efficient provision of public goods are satisfied.

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