Leviathan and competition among jurisdictions: the case of benefit taxation
Article Abstract:
The role of interjurisdictional competition for mobile factors of production in taming the Leviathan by forcing the government to improve the efficiency of the public sector was investigated. Specifically, benefit taxes such as environmental taxes, road pricing schemes and other fees paid for public-sector services were examined as an instrument for taming Leviathan governments. Results showed that tax competition tames bad governments and force them to redistribute resources from their own members to the public sector. In other words, interjurisdictional competition can be socially beneficial in a Leviathan government. Factor mobility tames the Leviathan that uses or abuses benefit taxes to generate rent income. However, the public sector may become more inefficient if the mobile factor is taxed.
Publication Name: Journal of Urban Economics
Subject: Government
ISSN: 0094-1190
Year: 1998
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Property taxes and property values: evidence from Proposition 2 1/2
Article Abstract:
The effect of property tax and fee increases on property values in Massachusetts is examined, in the aftermath of Proposition 2 1/2, the state's tax limitation measures. Initially communities that were constrained by the law saw large increases in state aid and use of fees but those communities that could increase their property taxes more rapidly saw greater increases in their housing values.
Publication Name: Journal of Urban Economics
Subject: Government
ISSN: 0094-1190
Year: 2004
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