Abstract
This paper presents two specifications of a simple general equilibrium model of a local public goods economy in which median voters determine the tax-expenditure package in each jurisdiction. Within the context of this model, two alternative tax regimes, a local income tax and a property tax, are compared. Prices, incomes, utility levels and the allocation of individuals across jurisdictions are shown to depend on the tax regime.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have