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Redistribution and provision of public goods in an economic federation
Umeå universitet, Samhällsvetenskapliga fakulteten, Institutionen för nationalekonomi.
Department of Economics, Uppsala University.
2008 (engelsk)Inngår i: Journal of Public Economic Theory, ISSN 1097-3923, E-ISSN 1467-9779, Vol. 10, nr 1, s. 125-143Artikkel i tidsskrift (Fagfellevurdert) Published
Abstract [en]

This paper concerns redistribution and public good provision in an economic federation with two levels of government: a local government in each locality and a (first mover) central government. Each locality is characterized by two ability-types, and the ability-distribution differs across localities. The central government redistributes via a nonlinear income tax and a lump-sum transfer to each local government, while the local governments use proportional income taxes and provide local public goods. We show how the redistributive role of taxation is combined with a corrective role, and how the central government can implement the second best resource allocation.

sted, utgiver, år, opplag, sider
John Wiley & Sons, 2008. Vol. 10, nr 1, s. 125-143
HSV kategori
Forskningsprogram
nationalekonomi
Identifikatorer
URN: urn:nbn:se:umu:diva-6726DOI: 10.1111/j.1467-9779.2008.00354.xOAI: oai:DiVA.org:umu-6726DiVA, id: diva2:146396
Tilgjengelig fra: 2007-12-17 Laget: 2007-12-17 Sist oppdatert: 2018-06-09bibliografisk kontrollert

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