Details

Autor(en) / Beteiligte

• TERAI, KIMIKO

Titel

Interregional Disparities in Productivity and the Choice of Fiscal Regime

Ist Teil von

• Journal of public economic theory, 2009-06, Vol.11 (3), p.383-409

Ort / Verlag

Malden, USA: Blackwell Publishing Inc

Erscheinungsjahr

2009

Quelle

Wiley-Blackwell Journals

Beschreibungen/Notizen

• Two districts with divergent productivity levels engage in policy‐making on the provision of local public goods that enhance future income and hence create a dynamic linkage across periods. The policy choices of district representatives are derived under alternative fiscal systems, and the relative merits of the systems are evaluated. It is predicted that a decentralized system is more likely to be selected in a more equal society. On the other hand, when a great deal of benefit spills over from a local public good, or when policy makers are expected to care solely about the immediate effects of their decisions on their districts, a centralized system is more likely to be selected.