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LOCAL AMENITIES AND RENTS: TIEBOUT TAKES A VACATION*[link]

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  • Nathan B. Anderson

Abstract

ABSTRACT This paper considers a two‐community model with free mobility, public expenditures set by majority voting, amenities that differ across communities, and two types of taxpayers sorting across communities according to different preferences. Residents pay local taxes, consume public services, and have the right to vote. Vacationers cannot vote, yet pay local taxes, and consume amenities. Amenities attract vacationers whose tax payments produce rents reducing the costs of public spending for permanent residents. These extractable rents produce stability in otherwise unstable equilibria. Relatively wealthy communities are generally less able than poor communities to extract rents.

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  • Nathan B. Anderson, 2008. "LOCAL AMENITIES AND RENTS: TIEBOUT TAKES A VACATION*[link]," Journal of Regional Science, Wiley Blackwell, vol. 48(3), pages 595-613, August.
    • Handle: RePEc:bla:jregsc:v:48:y:2008:i:3:p:595-613
    DOI: 10.1111/j.1467-9787.2008.00565.x
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    Cited by:

    1. Neumann, Uwe & Schaffner, Sandra, 2020. "Neighbourhood-level variation in the risk of private credit default: A driver of urban residential segregation?," Ruhr Economic Papers 875, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    2. Neumann, Uwe & Schaffner, Sandra & Eilers, Lea, 2019. "Bedeutung finanzieller Grundkompetenzen aus regionaler Perspektive. Gefördert durch die Dr. Josef und Brigitte Pauli-Stiftung," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 222358.
    3. Jason Giersch, 2014. "Effects of vacation properties on local education budgets," Cogent Economics & Finance, Taylor & Francis Journals, vol. 2(1), pages 1-9, December.

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