This paper analyses the segregative properties of local public goods production. Households living at the localization form a municipality, that will produce a local public good, financed through a proportional income tax. The tax rate is determined by the majority voting rule. Households may...

This paper examines the segregative properties of endogenous processes of jurisdiction formation in the presence of a competitive land market. In the considered model, a continuum of households with different income levels and the same preference for local public goods, private spending and...

This paper examines the segregative properties of Tiebout-type process of jurisdiction formation by freely mobile households in the presence of a central government which makes equalization transfers across jurisdictions so as to maximize a generalized utilitarian or a max–min objective. It is...