Dur, Robert; Staal, Klaas - CESifo - 2007
. When districts remain autonomous and local public goods have positive spillover effects on the neighboring district, there … is underprovision of public goods in both the city and the village. When districts consolidate, underprovision persists … in the village (and may become even more severe), whereas overprovision of public goods arises in the city as urbanites …