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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

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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:
DateEvent
March 2008Published
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

Data sourced from Thomson Reuters' Web of Knowledge

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