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The segregative properties of endogenous formation of jurisdictions with a welfarist central government

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  • Rongili Biswas
  • Nicolas Gravel
  • Rémy Oddou

Abstract

This paper examines the segregative properties of Tiebout-type process of jurisdiction formation by freely mobile households in the presence of a central government which makes equalization transfers across jurisdictions so as to maximize a generalized utilitarian or a max–min objective. It is shown that the introduction of such a central government significantly affects the set of stable jurisdiction structures. It is also shown that the class of households additively separable preferences that guarantees the wealth segregation of any stable jurisdiction structure is unaffected by the presence of a central government if this government uses a generalized utilitarian objective. Copyright Springer-Verlag 2013

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  • Rongili Biswas & Nicolas Gravel & Rémy Oddou, 2013. "The segregative properties of endogenous formation of jurisdictions with a welfarist central government," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 41(2), pages 293-319, July.
    • Handle: RePEc:spr:sochwe:v:41:y:2013:i:2:p:293-319
    DOI: 10.1007/s00355-012-0688-9
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    2. Benoît Tarroux, 2012. "Are equalization payments making Canadians better off? A two-dimensional dominance answer," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 10(1), pages 19-44, March.
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    4. Caplin, Andrew & Nalebuff, Barry, 1997. "Competition among Institutions," Journal of Economic Theory, Elsevier, vol. 72(2), pages 306-342, February.
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    6. Gravel, Nicolas & Thoron, Sylvie, 2007. "Does endogenous formation of jurisdictions lead to wealth-stratification?," Journal of Economic Theory, Elsevier, vol. 132(1), pages 569-583, January.
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    Cited by:

    1. Gravel, Nicolas & Oddou, Rémy, 2014. "The segregative properties of endogenous jurisdiction formation with a land market," Journal of Public Economics, Elsevier, vol. 117(C), pages 15-27.
    2. Remy Oddou, 2015. "Firms location and sorting," Economics Bulletin, AccessEcon, vol. 35(3), pages 1782-1787.
    3. Calabrese, Stephen & Epple, Dennis & Romano, Richard, 2023. "Majority choice of taxation and redistribution in a federation," Journal of Public Economics, Elsevier, vol. 217(C).

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