Abstract
Some cities have fewer taxable resources and higher costs for providing public services than do other cities. The result, which is widely regarded as unfair, is a wide variation in the ability of cities to supply public services. But our understanding of these fiscal disparities, particularly on the cost side, is limited. This paper provides a general treatment of fiscal disparities by incorporating input and environmental costs into a model of local expenditure determination, investigating the consequences of fiscal disparities in a system of local governments (including housing price adjustments and migration), and designing intergovernmental grants to offset fiscal disparities.
Original language | English (US) |
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Pages (from-to) | 316-337 |
Number of pages | 22 |
Journal | Journal of Urban Economics |
Volume | 19 |
Issue number | 3 |
DOIs | |
State | Published - May 1986 |
Externally published | Yes |
ASJC Scopus subject areas
- Economics and Econometrics
- Urban Studies