IDEAS home Printed from https://ideas.repec.org/p/zbw/tuedps/20.html
   My bibliography  Save this paper

Decentralized income redistribution in a federal economy

Author

Listed:
  • Wellisch, Dietmar

Abstract

This paper examines decentralized income redistribution in a federation with strategically competing regions and immobile as well as freely mobile households. The mobile households are altruistic toward the immobile households. The basic point of this paper can be stated as follows: the Nash-equilibrium of competing regional governments is Pareto-efficient. There is no role for a higher-level government, meaning there is no need to centralize the redistribution function. This result holds not only if mobile households are altruistic toward immobile residents they reside with but also if they are altruistic toward the Citizens of other jurisdictions.

Suggested Citation

  • Wellisch, Dietmar, 1991. "Decentralized income redistribution in a federal economy," Tübinger Diskussionsbeiträge 20, University of Tübingen, School of Business and Economics.
    • Handle: RePEc:zbw:tuedps:20
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/104823/1/tdb020.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Brown, Charles C. & Oates, Wallace E., 1987. "Assistance to the poor in a federal system," Journal of Public Economics, Elsevier, vol. 32(3), pages 307-330, April.
    2. Roger H. Gordon, 1983. "An Optimal Taxation Approach to Fiscal Federalism," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 98(4), pages 567-586.
    3. Boadway, Robin, 1982. "On the Method of Taxation and the Provision of Local Public Goods: Comment," American Economic Review, American Economic Association, vol. 72(4), pages 846-851, September.
    4. Myers, Gordon M., 1990. "Optimality, free mobility, and the regional authority in a federation," Journal of Public Economics, Elsevier, vol. 43(1), pages 107-121, October.
    5. Starrett, David A, 1980. "On the Method of Taxation and the Provision of Local Public Goods," American Economic Review, American Economic Association, vol. 70(3), pages 380-392, June.
    6. Wildasin, David E., 1980. "Locational efficiency in a federal system," Regional Science and Urban Economics, Elsevier, vol. 10(4), pages 453-471, November.
    7. Robin W. Boadway & Frank R. Flatters, 1982. "Efficiency and Equalization Payments in a Federal System of Government: A Synthesis and Extension of Recent Results," Canadian Journal of Economics, Canadian Economics Association, vol. 15(4), pages 613-633, November.
    8. Wildasin, David E, 1991. "Income Redistribution in a Common Labor Market," American Economic Review, American Economic Association, vol. 81(4), pages 757-774, September.
    9. John M. Hartwick, 1980. "The Henry George Rule, Optimal Population, and Interregional Equity," Canadian Journal of Economics, Canadian Economics Association, vol. 13(4), pages 695-700, November.
    10. Pauly, Mark V., 1973. "Income redistribution as a local public good," Journal of Public Economics, Elsevier, vol. 2(1), pages 35-58, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Boadway, Robin & Tremblay, Jean-François, 2010. "Mobility and Fiscal Imbalance," National Tax Journal, National Tax Association;National Tax Journal, vol. 63(4), pages 1023-1053, December.
    2. Wellisch, Dietmar, 1992. "On the decentralized provision of public goods with spillovers in the presence of household mobility," Tübinger Diskussionsbeiträge 19, University of Tübingen, School of Business and Economics.
    3. Wellisch, Dietmar, 1996. "Decentralized fiscal policy with high mobility reconsidered: Reasons for inefficiency and an optimal intervention scheme," European Journal of Political Economy, Elsevier, vol. 12(1), pages 91-111, April.
    4. Boadway, Robin & Tremblay, Jean-François, 2012. "Reassessment of the Tiebout model," Journal of Public Economics, Elsevier, vol. 96(11), pages 1063-1078.
    5. Szalai, Ákos, 2002. "Fiskális föderalizmus. Áttekintés [Fiscal federalism. A review]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 424-440.
    6. Lee, Kangoh, 1998. "Uncertain income and redistribution in a federal system," Journal of Public Economics, Elsevier, vol. 69(3), pages 413-433, September.
    7. Mitsui, Kiyoshi & Sato, Motohiro, 2001. "Ex ante free mobility, ex post immobility, and time consistency in a federal system," Journal of Public Economics, Elsevier, vol. 82(3), pages 445-460, December.
    8. Lee, Kangoh, 2002. "Factor Mobility and Income Redistribution in a Federation," Journal of Urban Economics, Elsevier, vol. 51(1), pages 77-100, January.
    9. Jean Hindriks & Gareth D. Myles, 2003. "Strategic Inter–Regional Transfers," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 5(2), pages 229-248, April.
    10. Wallace E. Oates & Wallace E. Oates, 2004. "An Essay on Fiscal Federalism," Chapters, in: Environmental Policy and Fiscal Federalism, chapter 22, pages 384-414, Edward Elgar Publishing.
    11. Anke S. Kessler & Christoph Lülfesmann & Gordon M. Myers, 2002. "Redistribution, Fiscal Competition, and the Politics of Economic Integration," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 69(4), pages 899-923.
    12. Kangoh Lee, 2003. "Factor Ownership and Governmental Strategic Interaction," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 5(2), pages 345-361, April.
    13. Calabrese, Stephen & Epple, Dennis & Romano, Richard, 2023. "Majority choice of taxation and redistribution in a federation," Journal of Public Economics, Elsevier, vol. 217(C).
    14. Lejour, A.M. & Verbon, H.A.A., 1991. "Centralized and decentralized decision making on social insurance in an integrated market (Revised version)," Discussion Paper 1991-61, Tilburg University, Center for Economic Research.
    15. Cremer, Helmuth & Pestieau, Pierre, 2002. "Factor Mobility and Redistribution: A Survey," IDEI Working Papers 154, Institut d'Économie Industrielle (IDEI), Toulouse, revised 2003.
    16. Boadway, Robin & Marchand, Maurice & Vigneault, Marianne, 1998. "The consequences of overlapping tax bases for redistribution and public spending in a federation," Journal of Public Economics, Elsevier, vol. 68(3), pages 453-478, June.
    17. Berliant, Marcus & Rothstein, Paul, 2000. "On Models with an Uncongestible Public Good and a Continuum of Consumers," Journal of Urban Economics, Elsevier, vol. 48(3), pages 388-396, November.
    18. Parviainen, Seija, 1998. "Redistribution and Risk Sharing in EMU," Discussion Papers 159, VATT Institute for Economic Research.
    19. Robin Boadway & Katherine Cuff, 2017. "The impressive contribution of Canadian economists to fiscal federalism theory and policy," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 50(5), pages 1348-1380, December.
    20. Kolmar, Martin, 1999. "Optimale Ansiedlung sozialpolitischer Entscheidungskompetenzen in der Europäischen Union," Beiträge zur Finanzwissenschaft, Mohr Siebeck, Tübingen, edition 1, volume 7, number urn:isbn:9783161471254, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:tuedps:20. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/wftuede.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.