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experimental micro-evidence in favor of contact theory …
Persistent link: https://www.econbiz.de/10012916911
The paper provides a comprehensive empirical analysis of majority rule and Tiebout sorting within a system of local jurisdictions. The idea behind the estimation procedure is to investigate whether observed levels of public expenditures satisfy necessary conditions implied by majority rule in a...
Persistent link: https://www.econbiz.de/10013218313
private providers of local public goods matters. This evidence needs a theory of the local public goods producer. Tiebout …'s hypothesis spawned a literature that gives local public economics a useful theory of the consumer which can generate a theory of … local public finance. This paper builds a theory of the producer that draws upon Tiebout's mechanism and the theory of …
Persistent link: https://www.econbiz.de/10013226984
I construct an agency model of local public goods producers with special reference to public schools. The model assumes that households make Tiebout choices among jurisdictions, but it has more realistic assumptions about information and the cost of residential mobility. I examine producers'...
Persistent link: https://www.econbiz.de/10013227037
Given the temptation on government officials to use some of their budget for 'perks,' residents face the problem of inducing officials to reduce such 'waste.' The threat to vote out of office officials who perform poorly is one possible response. In this paper, we explore the effect that...
Persistent link: https://www.econbiz.de/10013227493
This paper takes a fresh look at the trade-off between centralized and decentralized provision of local public goods. The point of departure is to model a centralized system as one in which public spending is financed by general taxation, but districts can receive different levels of local...
Persistent link: https://www.econbiz.de/10013228723
In this paper we use a 'market-based' approach to examine whether increased school expenditures are valued by potential residents and whether the current level of public school provision is inefficient. We do so by employing an instrumental variables strategy to estimate the effect of state...
Persistent link: https://www.econbiz.de/10013236678
This paper explores the relationship between the demographic characteristics of a community and the quantities of goods and services provided by its government We consider three models of public spending: a traditional "selfish" public choice model in which individuals care only about...
Persistent link: https://www.econbiz.de/10013239941
We examine the welfare effects of provision of local public goods in an empirically relevant setting using a multi-community model with mobile and heterogeneous households, and with flexible housing supplies. We characterize the first-best allocation and show efficiency can be implemented with...
Persistent link: https://www.econbiz.de/10013121991
Local public goods financed from a national tax base provide concentrated benefits to receipient jurisdictions but disperse costs, creating incentives for legislators to increase own-district spending but to restrain aggregate spending due to the associated tax costs. While these common pool...
Persistent link: https://www.econbiz.de/10013246358