local public finance
From The New Palgrave Dictionary of Economics, Second Edition, 2008
Edited by
Steven
N.
Durlauf
and
Lawrence
E.
Blume
Alternate versions available:
1987 Edition
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Abstract
The mobility of consumers and producers in response to fiscal incentives gives the study of local public finance its distinctive character. Households and firms are partitioned into spatial units on the basis of preferences, costs and the incentives provided by local tax and expenditure policies. These fiscal incentives are, in turn, chosen by the members of each of these jurisdictions or clubs. Externalities within and between these localities greatly affect the efficiency of taxation and the provision of public goods and services.
Keywords
clubs; congestion; efficient allocation; excise taxes; exclusionary zoning; intergovernmental grants; inter-jurisdictional competition; Lindahl tax structure; local public finance; local public goods; lump-sum taxes; marginal rate of substitution; marginal rate of transformation; median voter theorem; poll tax; property taxation; public finance; public goods; residential mobility; revenue sharing; stabilization; tax price; technical change; Tiebout hypothesis
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See Also
How to cite this article
Quigley, John M. "local public finance." The New Palgrave Dictionary of Economics. Second Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2008. The New Palgrave Dictionary of Economics Online. Palgrave Macmillan. 25 May 2013 <http://www.dictionaryofeconomics.com/article?id=pde2008_L000130> doi:10.1057/9780230226203.0986

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