A Critique of Tiebout's Theory of Local Public Expenditures

Bewley, Truman F.

doi:10.2307/1911519

Cited by 295 publications

(156 citation statements)

References 32 publications

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“…Suppose that a feasible allocation ( ; ; (x; z)) achieves an equal treatment utility level u = ( u ) 2 : i.e., for all 2 , and all 2 with ( ) > 0 and all h = 1; :::; H such that h = , u (x h ; z h ; z h ; e ; H ; h) = u . An equal treatment allocation ( ; ; (x; z)) is Pareto e¢ cient if there is no feasible allocation ( 0 ; 0 ; (x 0 ; z 0 )) such that 12 Bewley (1981) and Wooders (1989) also proposed equilibrium concepts in which only existing clubs are priced. Their equilibria achieve e¢ ciency through potential coalitional deviations by consumers (instead of managers'entrepreneurship: see Gersbach and Haller 2010 and Gersbach, Haller, and Konishi 2012 as well).…”

Section: The Main Resultsmentioning

confidence: 99%

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Entrepreneurial land developers: Joint production, local externalities, and mixed housing developments

Konishi

2013

Journal of Urban Economics

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Housing developments (condos and suburban developments) are not necessarily homogeneous. Developers provide di¤erent types of units of various sizes and other characteristics catering to di¤erent types of customers. In this paper, we allow joint production and local consumption externalities within each development, and show that land developers who seek a pro…t-maximizing set of units in developments may provide mixed developments. We show that there exists an equilibrium, and that every equilibrium is Pareto e¢ cient. We provide examples in which mixed developments arise in a long-run equilibrium. We relate this work to a widely used hedonic pricing model by Rosen (1974), and to an equilibrium concept under asymmetric information by Rothschild and Stiglitz (1976).

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Section: The Main Resultsmentioning

confidence: 99%

“…4 However, this is not a long-run equilibrium, since land developers can upgrade the second ‡oor units occupied by type 2 consumers. In the previous equilibrium allocation, type 2 consumers are getting utility…”

Section: Joint Production: Two-story Condo Buildingsmentioning

confidence: 99%

Entrepreneurial land developers: Joint production, local externalities, and mixed housing developments

Konishi

2013

Journal of Urban Economics

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“…Bien que le mécanisme de Tiebout soit imparfait, comme Bewley (1981) l'a montré, il peut être utile dans un contexte métropolitain. Son utilité dans un contexte interrégional ou international est bien moindre car il requiert une séparation physique des individus ayant des goûts et moyens financiers différents et le nombre d'entités politiques distinctes est néces-sairement limité.…”

Section: Resultsunclassified

Concurrence fiscale : un survol

Delage¹

2009

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Une décentralisation des décisions fiscales et l'utilisation du stock de capital comme assiette fiscale peuvent entraîner une compétition entre États. Cette compétition fiscale a pour conséquence que trop peu de biens publics sont produits et ce peu importe si ce sont les habitants ou les firmes de la région qui en bénéficient. Ce survol explore certaines facettes du problème de la compétition fiscale.Decentralized taxation decision making may lead to tax competition and to the underprovision of public goods. This will happen whenever revenues obtained from a tax on capital are used to finance the public good, whether the latter is to the benefits of firms or residents of one region. This survey explores some aspects of this tax competition literature

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“…In the context of local public goods provision, Tiebout (1956) provides a setup where the allocation is e¢ cient. A few decades later, Bewley (1981) formally restated Tiebout's claim and argued that the conditions to obtain e¢ ciency are quite strong.…”

Section: Literature Reviewmentioning

confidence: 99%

“…4 Skilled labor is scarce in region r as long as r < r , which we assume for all regions from now on.…”

Section: Set Upmentioning

confidence: 99%

Credible redistributive policies and migration across U.S. states

Armenter

Ortega

2010

Review of Economic Dynamics

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Does worker mobility undermine governments'ability to redistribute income? This paper analyzes the experience of US states in the recent decades. We build a tractable model where both migration decisions and redistribution policies are endogenous. We calibrate the model to match skill premium and worker productivity at the state level, as well as the size and skill composition of migration ‡ows. The calibrated model is able to reproduce the large changes in skill composition as well as key qualitative relationships of labor ‡ows and redistribution policies observed in the data. Our results suggest that regional di¤erences in labor productivity are an important determinant of interstate migration. We use the calibrated model to compare the cross-section of redistributive policies with and without worker mobility. The main result of the paper is that interstate migration has induced substantial convergence in tax rates across US states, but no race to the bottom. Skill-biased in-migration has reduced the skill premium and the need for tax-based redistribution in the states that would have had the highest tax rates in the absence of mobility.

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A Critique of Tiebout's Theory of Local Public Expenditures

Cited by 295 publications

References 32 publications

Entrepreneurial land developers: Joint production, local externalities, and mixed housing developments

Entrepreneurial land developers: Joint production, local externalities, and mixed housing developments

Concurrence fiscale : un survol

Credible redistributive policies and migration across U.S. states

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