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A theory of distributional conflict, voluntarism and segregation
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Horstmann, Ignatius J. and Scharf, Kimberly A. (2008) A theory of distributional conflict, voluntarism and segregation. In: Annual Meeting of the Royal-Economic-Society, Univ Warwick, Warwick, England, Apr 11th, 2007. Published in: Economic Journal, Vol.118 (No.527). pp. 427-453. ISSN 0013-0133. doi:10.1111/j.1468-0297.2007.02128.x
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Official URL: http://dx.doi.org/10.1111/j.1468-0297.2007.02128.x
Abstract
Along with the rise in income inequality in the US, there is evidence of a simultaneous move towards fiscal devolution and increased government reliance on private provision of public goods. This article argues that these phenomena are related. We describe a model of jurisdiction and policy formation in which the structure of government provision is endogenous and public good provision levels are determined by a political process that can exploit private motives for voluntary giving. The model predicts that an increase in income inequality leads to decentralisation, with local jurisdictions becoming more income-homogeneous than the population as a whole. This reduction in local income heterogeneity, combined with a reduced tax base, results in increased reliance by government on private provision.
| Item Type: | Conference Item (Paper) | ||||
|---|---|---|---|---|---|
| Subjects: | H Social Sciences > HC Economic History and Conditions | ||||
| Divisions: | Faculty of Social Sciences > Economics | ||||
| Journal or Publication Title: | Economic Journal | ||||
| Publisher: | Blackwell | ||||
| ISSN: | 0013-0133 | ||||
| Official Date: | March 2008 | ||||
| Dates: |
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| Volume: | Vol.118 | ||||
| Number: | No.527 | ||||
| Number of Pages: | 27 | ||||
| Page Range: | pp. 427-453 | ||||
| DOI: | 10.1111/j.1468-0297.2007.02128.x | ||||
| Status: | Peer Reviewed | ||||
| Publication Status: | Published | ||||
| Access rights to Published version: | Restricted or Subscription Access | ||||
| Conference Paper Type: | Paper | ||||
| Title of Event: | Annual Meeting of the Royal-Economic-Society | ||||
| Type of Event: | Conference | ||||
| Location of Event: | Univ Warwick, Warwick, England | ||||
| Date(s) of Event: | Apr 11th, 2007 |
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