Majority Choice of Taxation and Redistribution in a Federation / Stephen Calabrese, Dennis Epple, Richard Romano.

Format:

Book

Author/Creator:

Calabrese, Stephen.

Contributor:

National Bureau of Economic Research.

Epple, Dennis.

Romano, Richard.

Series:

Working Paper Series (National Bureau of Economic Research) no. w25099.

NBER working paper series no. w25099

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2018.

Summary:

We provide a model with a federal government and multiple local governments, the former with power to levy an income tax for redistribution, and the latter choosing a local income tax, property tax, lump-sum tax or subsidy, and a local public good. Policy is set by majority choice at each tier of government by households that differ by income and ability to move across communities. We provide sufficient conditions for existence of equilibrium and examine its properties. Central findings are federal income distribution, little local redistribution, and local preference for property taxation over income taxation to fund local public goods.

Notes:

Print version record

September 2018.