Municipal annexation and local monopoly power

✍ Scribed by Rodolfo A. Gonzalez; Stephen L. Mehay

• Publisher: Springer US
• Year: 1987
• Tongue: English
• Weight: 612 KB
• Volume: 52
• Category: Article
• ISSN: 0048-5829
• DOI: 10.1007/bf00116707

✦ Synopsis

Consider an economy composed of spatially separate regions in the sense that migration across regions affects significantly the rewards that individuals derive from private activities. If land prices in a region are competitively determined, the benefits of locating in that region will not be fully captured by land rents, leaving a locational consumer surplus. Suppose that * The authors would like to thank Roger Folsom for helpful comments. Financial support provided by the Earhart Foundation is gratefully acknowledged.