This paper considers the problem of regional allocation of government funds in a two-region, two-good economy in which production of each good requires labor, capital, and a local public good. Changes in regional allocation of federal expenditures and public services are found to significantly...

This paper examines cross-state differences in the responsiveness of per capita state and local revenues to changes in factors that determine these revenues. Our model proceeds from two intuitive points of departure. First, because of differing tastes and attitudes among the population toward...