The decision to regionalize in the provision of education: an application ofthe Tiebout model
Article Abstract:
Regional provision for education is examined in the context of the Tiebout model. This model involves an array of suburban communities with different tax and public goods provisions. Equilibrium is attained when consumers choose their preferred community such that the average cost of provision is minimized. However, subjective individual valuation scalesand different optimal community levels lead to unexploited scale economies, since optimal community size is determined by the scale of the public good withminimum scale economies. Joint provision for some public goods, while retaininglocal control over others, may be a solution to this dilemma. A case study of three Connecticut towns that regionalized education in 1949 illustrates this solution. Analysis indicates that the only drawback to this strategy is in the determination of the minimum amount and quality of education to supply.
Publication Name: Journal of Urban Economics
Subject: Government
ISSN: 0094-1190
Year: 1993
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Optimal regulation of land development through price and fiscal controls
Article Abstract:
The residents of a community can use several techniques to regulate the developers of vacant land, including imposing zoning laws, implementing price regulation, and shifting fiscal burdens between themselves and the developer. Price controls and creative fiscal arrangements can efficiently control the developer under conditions of perfect certainty. Restructured fiscal arrangements are effective under conditions of uncertainty over future prices. Communities can help improve the land development process and social welfare by regulating prices and developing creative fiscal arrangements, such as selling tax liabilities.
Publication Name: Journal of Urban Economics
Subject: Government
ISSN: 0094-1190
Year: 1991
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