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The impact of fiscal decentralization on income segregation

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Author Info
Francisco Martínez Mora () (University of Leicester)

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Abstract

We investigate how decentralizing the provision and funding of a publicly provided good from central (or regional) to local governments affects income segregation in an urban area. As the previous theoretical literature suggests, local provision and funding of a publicly provided good by itself generates incentives for income segregation. However, other segregating forces such as local amenities are also at work in urban areas. We show that, once this important feature of urban economies is considered, decentralisation will reduce income segregation if the population has heterogeneous preferences for the publicly provided good.

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Paper provided by Centro de Estudios Andaluces in its series Economic Working Papers at Centro de Estudios Andaluces with number E2004/68.

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Length: 47 pages
Date of creation: 2004
Date of revision:
Handle: RePEc:cea:doctra:e2004_68

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Related research
Keywords: fiscal decentralisation; segregation; Tiebout; residential mobility.;

Find related papers by JEL classification:
H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
R13 - Urban, Rural, and Regional Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
R31 - Urban, Rural, and Regional Economics - - Production Analysis and Firm Location - - - Housing Supply and Markets

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