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- W2025103080 abstract "New special district governments account for most of the growth in the number of governments in the US over the past few decades. This paper presents a positive model of the formation of special districts that provide goods via an increasing-returns-to-scale technology, such as water or sewerage districts. The formation of a special district is modeled as a noncooperative game between a city and a suburb. A city's interest in and ability to annex surrounding suburbs is closely linked with incentives to form a special district. Cities which must gain approval from suburban areas in order to annex new territory may use access to cheaper publicly-provided goods as a `carrot' to induce surrounding areas to accept annexation. Therefore, growing cities without strong annexation powers will not agree to form a special district, so long as annexation is possible and desirable." @default.
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- W2025103080 date "1998-01-01" @default.
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- W2025103080 title "A positive model of special district formation" @default.
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- W2025103080 doi "https://doi.org/10.1016/s0166-0462(97)00023-9" @default.
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