Spatial competition between jurisdictions which tax perfectly competitive retail (or production) centers
Article Abstract:
The taxation of perfectly competitive retail or production centers within jurisdictions is examined. general sales taxes and excise taxes often differ between jurisdictions. A model is constructed to account for this situation. The model assumes that the jurisdictions occur along a line that is uniformly populated with consumers that minimize price and travel costs, given a perfectly inelastic demand for spatial goods. In addition, exogenously-spaced retails centers have constant marginal costs such that prices increase by the tax amount, and that jurisdictions maximize their residents' consumer surplus and its total tax revenue. The results indicate that the tax chosen depends on the taxes in neighboring areas, the spacing between retail centers and the locations of area boundaries. Exporting jurisdictions impose positive taxes, whereas importing jurisdictions impose zero taxes. Either zero or positive taxes are chosen if jurisdictional fiscal policy is endogenous.
Publication Name: Journal of Urban Economics
Subject: Government
ISSN: 0094-1190
Year: 1993
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Optimal spatial growth of employment and residences
Article Abstract:
Urban residential and employment location patterns are examined for an area characterized by smoothly growing population and irreversible land use commitments. It is a given that all output is delivered to the center of the urban area and that commuters have expenses associated with getting to work. The best solution is also the equilibrium solution, minimizing the current discounting value of commuting plus aggregate shipping expenses. The residential area grows outward over time, but a constant part of the land is always held for future development of employment.
Publication Name: Journal of Urban Economics
Subject: Government
ISSN: 0094-1190
Year: 1988
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Residential spatial growth with perfect foresight and multiple income groups
Article Abstract:
Land use patterns of consumers from different income groups in monocentric cities with centralized employment are explored. A simple theoretical model for the expansion of such urban areas is posited, assuming the following: the durability of housing, the perfect foresight of landowners, the Cobb-Douglas consumer utility function and housing technology, and the constant percentage rate changes of per capita income and transportation costs per mile. An extended model that considers filtering and abandonment is also presented.
Publication Name: Journal of Urban Economics
Subject: Government
ISSN: 0094-1190
Year: 1991
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