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Keeping People Out: Income Distribution, Zoning, and the Quality of Public Education

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Author Info
Fernandez, Raquel
Rogerson, Richard

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Abstract

The authors examine the effect of community zoning regulations on allocations and welfare in a two-community model. Individuals choose in which community to live and each community levies a tax, chosen via majority vote, on local property to finance local public education. The authors study both exogenously specified and endogenously chosen zoning regulations. In equilibrium, the two communities are stratified by income. Theoretical analysis indicates that a number of outcomes are possible. Several interesting results emerge: zoning tends to make the richer community more exclusive but the gap between education expenditures may decrease. Moreover, welfare effects are not monotone in income. Copyright 1997 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

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Publisher Info
Article provided by Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association in its journal International Economic Review.

Volume (Year): 38 (1997)
Issue (Month): 1 (February)
Pages: 23-42
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Handle: RePEc:ier:iecrev:v:38:y:1997:i:1:p:23-42

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  1. Marc St-Pierre & Daniel Mejia, 2004. "Unequal opportunities and human capital formation," Econometric Society 2004 Latin American Meetings 188, Econometric Society. [Downloadable!]
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  2. Boerner, Kira & Uebelmesser, Silke, 2005. "Migration and the Welfare State: The Economic Power of the Non-Voter?," Discussion Papers in Economics 728, University of Munich, Department of Economics. [Downloadable!]
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  3. Steve Gibbons, 2001. "Paying for good neighbours? Neighbourhood deprivation and the communiy benefits of education," CEE Discussion Papers 0017, Centre for the Economics of Education, LSE. [Downloadable!]
  4. Jesse M. Rothstein, 2006. "Good Principals or Good Peers? Parental Valuation of School Characteristics, Tiebout Equilibrium, and the Incentive Effects of Competition among Jurisdictions," American Economic Review, American Economic Association, vol. 96(4), pages 1333-1350, September. [Downloadable!]
  5. Jyh-Fa Tsai & Shin-Kun Peng & Fu-Chuan Lai, 2006. "Spatial duopoly with zoning," The Annals of Regional Science, Springer, vol. 40(3), pages 515-530, August. [Downloadable!] (restricted)
  6. Horstmann, Ignatius J & Scharf, Kimberley Ann, 2002. "A Theory of Distributional Conflict, Voluntarism and Segregation," CEPR Discussion Papers 3625, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  7. María J. Luengo Prado & Oscar Volij, 1999. "Public Education, Communities, and Vouchers," Economic theory and game theory 008, Oscar Volij. [Downloadable!]
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  8. Lin, Haixia, 2006. "Natural Amenities, Income Mix, and Endogenous Community Characteristics," 2006 Annual meeting, July 23-26, Long Beach, CA 21263, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  9. François Ortalo-Magné & Andrea Prat, 2005. "The Political Economy of Housing Supply," Levine's Bibliography 122247000000000954, UCLA Department of Economics. [Downloadable!]
  10. Fernández, Raquel, 2001. "Sorting, Education and Inequality," CEPR Discussion Papers 3020, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  11. Raquel Fernandez, 2001. "Sorting, Education and Inequality," NBER Working Papers 8101, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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