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Reassessment of the Tiebout model

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  • Boadway, Robin
  • Tremblay, Jean-François

Abstract

The Tiebout model has been the reference point for the classical approach to fiscal federalism. Its emphasis on mobility, benefit taxation, and the advantages of fiscal competition have informed fiscal federalism since the seminal contributions of Musgrave and Oates. This paper reviews the influence that the Tiebout model has had on fiscal federalism, and argues that while its insights remain relevant for local government, it is far from compelling as a positive description of, or a normative prescription for, fiscal federalism at the state level. Some aspects of alternative approaches are presented, which lead to different perspectives than Tiebout-inspired ones.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Public Economics.

Volume (Year): 96 (2012)
Issue (Month): 11 ()
Pages: 1063-1078

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Handle: RePEc:eee:pubeco:v:96:y:2012:i:11:p:1063-1078

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Web page: http://www.elsevier.com/locate/inca/505578

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Keywords: Fiscal federalism;

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References

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Cited by:
  1. Yutao Han & Patrice Pieretti & Benteng Zou, 2013. "On the desirability of tax coordination when countries compete in taxes and infrastructures," CREA Discussion Paper Series 13-02, Center for Research in Economic Analysis, University of Luxembourg.
  2. Han, Yutao & Pieretti, Patrice & Zou, Benteng, 2014. "Does size asymmetry exacerbate the inefficiency of tax competition?," Economics Letters, Elsevier, vol. 122(1), pages 16-18.
  3. Francis Bloch & Unal Zenginobuz, 2012. "Oates' Decentralization Theorem with Household Mobility," Working Papers hal-00657823, HAL.
  4. Yutao Han, 2013. "Who benefits from partial tax coordination?," CREA Discussion Paper Series 13-24, Center for Research in Economic Analysis, University of Luxembourg.

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