This 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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Publisher Info
Paper 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: Handle: RePEc:hhs:umnees:0510
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 Email: Web page: http://www.econ.umu.se/ More information through EDIRC
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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
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