Resumen de Public goods in tourism municipalities: formal analysis, empirical evidence and implications for sustainable development

Ricard Rigall i Torrent, Modest Fluvià

• This paper formally analyses the effects that public goods (in a broad sense) have on tourists and private tourism firms. By approaching the tourism product as a bundle of characteristics, the paper shows how the supply of public goods in tourism municipalities positively affects both the tourists� utility functions and the private firms� production functions. Some implications of this fact regarding the sustainability of tourism are discussed. By means of hedonic methods, empirical evidence of location on prices for hotels on Catalonia�s coast (Spain) is provided.