On the political economy of tax limits
AbstractWe study the political economy of state limitations on the taxing powers of local governments, investigating the effects of such restriction on housing markets, community composition, and types of taxes and expenditures undertaken by local governments. We characterize equilibrium when voters choose values of multiple policy (tax and expenditure) instruments, finding that tax limitations have very substantial effects on housing prices and the composition of communities. Political support for tax limits comes from suburban voters and from a subset of central-city voters. Support for tax limits come even from residents of communities that are not constrained by the limits.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Institut d'Economia de Barcelona (IEB) in its series Working Papers with number 2010/14.
Length: 54 pages
Date of creation: 2010
Date of revision:
Tax limits; redistribution; public goods; property tax; income tax; head tax;
Find related papers by JEL classification:
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
- H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
- H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
- H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
- H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
This paper has been announced in the following NEP Reports:
- NEP-ACC-2010-05-02 (Accounting & Auditing)
- NEP-ALL-2010-05-02 (All new papers)
- NEP-PBE-2010-05-02 (Public Economics)
- NEP-POL-2010-05-02 (Positive Political Economics)
- NEP-PUB-2010-05-02 (Public Finance)
- NEP-URE-2010-05-02 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Fischel, William A., 1989. "Did Serrano Cause Proposition 13?," National Tax Journal, National Tax Association, vol. 42(4), pages 465-73, December .
- Bucovetsky, Sam, 1991. "Choosing tax rates and public expenditure levels using majority rule," Journal of Public Economics, Elsevier, vol. 46(1), pages 113-131, October.
- Nechyba, Thomas J, 1997.
"Local Property and State Income Taxes: The Role of Interjurisdictional Competition and Collusion,"
Journal of Political Economy,
University of Chicago Press, vol. 105(2), pages 351-84, April.
- Thomas J. Nechyba, 1996. "Local Property and State Income Taxes: The Role of Interjurisdictional Competition and Collusion," NBER Working Papers 5419, National Bureau of Economic Research, Inc.
- Dennis N. Epple & Richard Romano, 2003.
"Neighborhood Schools, Choice, and the Distribution of Educational Benefits,"
in: The Economics of School Choice, pages 227-286
National Bureau of Economic Research, Inc.
- Dennis Epple & Richard Romano, 2000. "Neighborhood Schools, Choice, and the Distribution of Educational Benefits," NBER Working Papers 7850, National Bureau of Economic Research, Inc.
- Zodrow, George, 1984. "The incidence of metropolitan property tax base sharing and rate equalization," Journal of Urban Economics, Elsevier, vol. 15(2), pages 210-229, March.
- Goodspeed, Timothy J., 1989. "A re-examination of the use of ability to pay taxes by local governments," Journal of Public Economics, Elsevier, vol. 38(3), pages 319-342, April.
- Stephen M. Calabrese, 2001. "Local Redistribution Financed by Income Tax," Public Finance Review, , vol. 29(4), pages 259-303, July.
- Federico Revelli, 2012.
"Business taxation and economic performance in hierarchical government structures,"
2012/12, Institut d'Economia de Barcelona (IEB).
- Revelli Federico, 2012. "Business taxation and economic performance in hierarchical government structures," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201204, University of Turin.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.