Oates's theory and its application to the global problem of climate changing

This paper analyses Oates's approach to the problems of the provision of public goods and decentralization. The question raised by Oates is: What form of government promises the greatest success in resolving the allocation, distribution, and stabilization problems? Oates provides an economic case for centralized and decentralized government, and the optimal form of government. As well, this paper pays attention to the application of Oates's theory to the problems of climate change.