This Article Full Text (PDF) References Alert me when this article is cited Alert me if a correction is posted Services Email this article to a friend Similar articles in this journal Alert me to new issues of the journal Add to Saved Citations Download to citation manager Add to My Marked Citations Citing Articles Citing Articles via HighWire Citing Articles via Google Scholar Google Scholar Articles by Yagi, T. Search for Related Content Social Bookmarking                   What's this?

Deterioration of Public Capital and Optimal Policy of Local and Central Government

Faculty of Economics, Nagoya University, Furocho 1, Chikusa-ku, Nagoya 464, Japan

Deterioration of public capital in the US has been reported to be in crisis since the mid 1970s. There is an argument which insists that the deterioration is caused by the shortage of expenditure on the maintenance of public capital. The budget allocation for maintenance is not a technological problem. The purpose of this paper is to analyse the following three issues by describing both local and central government behaviour. First, the optimal conditions for the allocation of maintenance expenditure are examined. Secondly, the impact of the differences in preference of residents for public capital used for amenity and maintenance is examined. Finally, we examine the condition for the case where provision of subsidy from the central government to a local government creates a large loss of efficiency.

CiteULike    Connotea    Del.icio.us    Digg    Reddit    Technorati    What's this?

This article has been cited by other articles:

				B. A. Mikelbank and R. W. Jackson The Role of Space in Public Capital Research International Regional Science Review, July 1, 2000; 23(3): 235 - 258. [Abstract] [PDF]