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Author:Epple, D.
Platt, G.
Title:Equilibrium and local redistribution in an urban economy when households differ in both preferences and incomes
Journal:Journal of Urban Economics
1998 : JAN, VOL. 43:1, p. 23-51
Index terms:DISTRIBUTION
URBAN AREAS
ECONOMIC CONDITIONS
Language:eng
Abstract:This paper studies equilibrium and redistribution in a system of local jurisdictions when households differ by both preferences and income. Differences in preferences may be either idiosyncratic or associated with differing demographic characteristics. Households are free to move among communities that offer different tax-expenditure packages. Within communities, households vote on the tax-expenditure package the community provides. heterogeneity of preferences, as well as incomes, gives rise to an allocation of households across communities in which stratification by income no longer holds.
SCIMA record nr: 171077
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