Arbeitspapier
The new federalism: Distributional conflict, voluntarism, and segregation
Along with the rise in income inequality in the U.S., we have observed a simultaneous move toward fiscal devolution and increased government reliance on private provision of public goods. This paper argues that these phenomena are related. We describe a model of jurisdiction and policy formation in which the structure of government provision is endogenous and public good provision levels are determined by a political process that can exploit private motives for voluntary giving. The model predicts that an increase in income inequality leads to decentralization, with local jurisdictions becoming more income-homogeneous than the population as a whole. This reduction in local income heterogeneity, combined with a reduced tax base, results in increased reliance by government on private provision.
- Sprache
-
Englisch
- Erschienen in
-
Series: Research Report ; No. 2000-11
- Klassifikation
-
Wirtschaft
- Thema
-
fiscal federalism
private provision of public goods
jurisdiction formation
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Horstmann, Ignatius J.
Scharf, Kimberley A.
- Ereignis
-
Veröffentlichung
- (wer)
-
The University of Western Ontario, Department of Economics
- (wo)
-
London (Ontario)
- (wann)
-
2000
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Horstmann, Ignatius J.
- Scharf, Kimberley A.
- The University of Western Ontario, Department of Economics
Entstanden
- 2000
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