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Title:Agglomeration, Population Size, and the Cost of Providing Public Services: An Empirical Analysis for German States PDF Logo
Authors:Stegarescu, Dan
Schwager, Robert
Büttner, Thiess
Issue Date:2004
Series/Report no.:ZEW Discussion Papers 04-18
Abstract:This paper is concerned with the question as to what extent population size and density affect the cost of providing public services at the subnational level. Empirical estimates of cost functions are obtained from an analysis of the expenditures of German states disaggregated into about 40 functions of government. The empirical results indicate that generally there is no significant relationship between population density and the cost of public goods. At the same time, cost are almost proportionately related to population size indicating that goods and services provided by the German states display only a limited degree of publicness.
Subjects:agglomeration
cost of public services
local public goods
JEL:H73
H72
H41
Document Type:Working Paper
Appears in Collections:Publikationen von Forscherinnen und Forschern des ZEW
ZEW Discussion Papers

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