On the effects of factor mobility on local infrastructure policy and rent-seeking
This paper deals with the influence of factor mobility on local infrastructure policy and rent-seeking activities of local interest groups. It employs a model where households differ with respect to their endowment with the immobile factor land. Local governments decide about the level of productive infrastructure in their jurisdiction. According to their land endowment, different households benefit to a different degree from the infrastructure. This redistribution effect of local infrastructure gives households an incentive for rent-seeking: Landabundant households seek to influence their government to increase the level of infrastructure whereas land-poor households seek to influence their government to reduce the infrastructure level. As this paper shows, factor mobility and fiscal competition between local governments lead to increasing rent-seeking expenditures for a broad class of cases.
|Date of creation:||1998|
|Date of revision:|
|Contact details of provider:|| Postal: Kiellinie 66, D-24105 Kiel|
Phone: +49 431 8814-1
Fax: +49 431 85853
Web page: http://www.ifw-kiel.de
More information through EDIRC
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.:
- Zodrow, George R. & Mieszkowski, Peter, 1986. "Pigou, Tiebout, property taxation, and the underprovision of local public goods," Journal of Urban Economics, Elsevier, vol. 19(3), pages 356-370, May.
- Sinn, Hans-Werner, 1997.
"The selection principle and market failure in systems competition,"
Journal of Public Economics,
Elsevier, vol. 66(2), pages 247-274, November.
- Sinn, Hans-Werner, 1997. "The selection principle and market failure in systems competition," Munich Reprints in Economics 19854, University of Munich, Department of Economics.
- Richard H. Clarida & Ronald Findlay, 1991. "Endogenous Comparative Advantage, Government, and the Pattern of Trade," NBER Working Papers 3813, National Bureau of Economic Research, Inc.
- Oates, Wallace E. & Schwab, Robert M., 1988. "Economic competition among jurisdictions: efficiency enhancing or distortion inducing?," Journal of Public Economics, Elsevier, vol. 35(3), pages 333-354, April.
- Lorz, Jens Oliver, 1996.
"Capital mobility, tax competition, and lobbying for redistributive capital taxation,"
Kiel Working Papers
779, Kiel Institute for the World Economy.
- Lorz, Oliver, 1998. "Capital mobility, tax competition, and lobbying for redistributive capital taxation," European Journal of Political Economy, Elsevier, vol. 14(2), pages 265-279, May.
- McMillan, John, 1979. "A Note on the Economics of Public Intermediate Goods," Public Finance = Finances publiques, , vol. 34(2), pages 293-99.
- Rauscher, Michael, 1993. "Biased policy decisions and the provision of public inputs in open economies," Kiel Working Papers 558, Kiel Institute for the World Economy (IfW).
- Coughlin, Peter J. & Mueller, Dennis C. & Murrell, Peter, 1990. "A model of electroral competition with interest groups," Economics Letters, Elsevier, vol. 32(4), pages 307-311, April.
When requesting a correction, please mention this item's handle: RePEc:kie:kieliw:850. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dieter Stribny)The email address of this maintainer does not seem to be valid anymore. Please ask Dieter Stribny to update the entry or send us the correct email address
If references are entirely missing, you can add them using this form.