The allocation of transport infrastructure in Swedish municipalities
Overview
Background & policy context:
Political economics offers several explanations for the preferences that guide the provision of public services. In this paper, we examine three of these. The district demand model starts by noting that spending on public goods, here transport infrastructure, provides benefits that primarily are geographically concentrated, while costs are paid by taxpayers at large. This separation between the benefits and costs of projects may create an incentive for political parties to increase spending in electoral districts or municipalities that predominately vote for them. Since each district pays only a small share of the associated costs, but enjoys most of the benefits, new infrastructure may be seen as a prize won by the political majority for their constituency. In addition, and in order to avoid overspending, parties have reason to restrain spending in other districts.
Objectives:
The objective of the study is to suggest the allocation of transport infrastructure in Swedish municipalities.
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