Income Distribution and the Optimal Provision of Local Public Goods
AbstractThis paper analyzes how the distribution of gross income among residents in a locality affects the local provision of public goods. The analysis is based on a two-type model, where the local residents can be either high income earners or low income earners. Local provision is assumed to reflect the actions of a benthamite planner giving equal weight to the utilities of all inhabitants. In this framework, three factors turn out to be particularly important for how the distribution of private income across local residents effects the local provision of public goods: (i) the local means of redistribution and taxation, (ii) the particular form of the local residents' utility functions and (iii) migration across localities.
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Bibliographic InfoPaper provided by Umeå University, Department of Economics in its series Umeå Economic Studies with number 510.
Length: 20 pages
Date of creation: 30 Apr 1999
Date of revision:
Contact details of provider:
Postal: Department of Economics, Umeå University, S-901 87 Umeå, Sweden
Phone: 090 - 786 61 42
Fax: 090 - 77 23 02
Web page: http://www.econ.umu.se/
More information through EDIRC
Income distribution; Local public goods;
Find related papers by JEL classification:
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
- H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
This paper has been announced in the following NEP Reports:
- NEP-ALL-1999-05-03 (All new papers)
- NEP-IND-1999-05-03 (Industrial Organization)
- NEP-LAB-1999-05-03 (Labour Economics)
- NEP-MIC-1999-05-03 (Microeconomics)
- NEP-PBE-1999-05-03 (Public Economics)
- NEP-PUB-1999-05-03 (Public Finance)
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