Inequality, Segregation, and Redistribution
In a model of endogenous choice of location and endogenous aversion against inequality, we demonstrate that large pre-tax difference in income may lead to a residential segregation of rich and poor. Such segregation may reduce the social attachment between the groups in society, and reduce the willingness of the rich to make transfers to the poor.
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|Date of creation:||2000|
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- W.Norton Grubb, 1982. "The Dynamic Implications of the Tiebout Model: the Changing Composition of Boston Communities, 1960-1970," Public Finance Review, , vol. 10(1), pages 17-38, January.
- Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416.
- Pauly, Mark V., 1973. "Income redistribution as a local public good," Journal of Public Economics, Elsevier, vol. 2(1), pages 35-58, February.
- Meltzer, Allan H & Richard, Scott F, 1981. "A Rational Theory of the Size of Government," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 914-27, October.
- Persson, Mats, 1995. " Why Are Taxes So High in Egalitarian Societies?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 97(4), pages 569-80, December.
- 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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