Abstract
This paper examines some of the main assumptions and results of the literature on majority rule equilibrium in local public good economies. It is shown that the usual assumption that the ordering of agents' MRSs between the private and public good is a continuous, monotone function of income and independent of the other economic variables is not necessary for an MRE to exist. In addition, it is shown that in economies with “home ownership”, stratification of agents by income or preferences need not occur in equilibrium.
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