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

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  • Fernandez, R.
  • Rogerson, R.

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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Bibliographic Info

Paper provided by Boston University - Department of Economics in its series Papers with number 19.

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Length: 35 pages
Date of creation: 1993
Date of revision:
Handle: RePEc:fth:bostec:19

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Keywords: education ; income;

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  1. Epple, Dennis & Romer, Thomas & Filimon, Radu, 1988. "Community development with endogenous land use controls," Journal of Public Economics, Elsevier, vol. 35(2), pages 133-162, March.
  2. Rose-Ackerman, Susan, 1979. "Market models of local government: Exit, voting, and the land market," Journal of Urban Economics, Elsevier, vol. 6(3), pages 319-337, July.
  3. Henderson, J Vernon, 1980. "Community Development: The Effects of Growth and Uncertainty," American Economic Review, American Economic Association, vol. 70(5), pages 894-910, December.
  4. de Bartolome, Charles A M, 1990. "Equilibrium and Inefficiency in a Community Model with Peer Group Effects," Journal of Political Economy, University of Chicago Press, vol. 98(1), pages 110-33, February.
  5. Roberts, Kevin W. S., 1977. "Voting over income tax schedules," Journal of Public Economics, Elsevier, vol. 8(3), pages 329-340, December.
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