IDEAS home Printed from https://ideas.repec.org/a/mof/journl/ppr007b.html
   My bibliography  Save this article

Redistribution and Local Public Finance

Author

Listed:
  • Masayoshi Hayashi

    (Associate Professor, Hitotsubashi University)

Abstract

This essay reviews theoretical arguments concerning the issue of decentralized redistribution. We make a representative examination of what are regarded as the merits and demerits of fiscal decentralization from a redistributive perspective, emphasizing the concepts of social solidarity. We proceed to take a closer look at the decentralization theorem, and argue that the celebrated theorem is not an appropriate framework for the issue of redistribution. We then review other merits as well, and argue that those merits largely concern the cost-efficiency of public service delivery and could be in principle exploited without compromising the principle of horizontal equity, through two forms of administrative decentralization, delegation and de-concentration. However, the local incentive problem still remains. The design of transfers and personnel control mechanism will be a crucial factor to attain the cost-efficiency of local administration.

Suggested Citation

  • Masayoshi Hayashi, 2010. "Redistribution and Local Public Finance," Public Policy Review, Policy Research Institute, Ministry of Finance Japan, vol. 6(1), pages 31-54, February.
    • Handle: RePEc:mof:journl:ppr007b
    as

    Download full text from publisher

    File URL: http://warp.ndl.go.jp/info:ndljp/pid/9908001/www.mof.go.jp/english/pri/publication/pp_review/ppr007/ppr007b.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Robin Boadway, 1976. "Integrating Equity and Efficiency in Applied Welfare Economics," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 90(4), pages 541-556.
    2. Feldstein, Martin & Wrobel, Marian Vaillant, 1998. "Can state taxes redistribute income?," Journal of Public Economics, Elsevier, vol. 68(3), pages 369-396, June.
    3. Ahmad, Ehtisham & Stern, Nicholas, 1984. "The theory of reform and indian indirect taxes," Journal of Public Economics, Elsevier, vol. 25(3), pages 259-298, December.
    4. Brown, Charles C. & Oates, Wallace E., 1987. "Assistance to the poor in a federal system," Journal of Public Economics, Elsevier, vol. 32(3), pages 307-330, April.
    5. Bev Dahlby, 1996. "Fiscal externalities and the design of intergovernmental grants," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 3(3), pages 397-412, July.
    6. Cremer, Helmuth & et al, 1996. "Mobility and Redistribution: A Survey," Public Finance = Finances publiques, , vol. 51(3), pages 325-352.
    7. Bergson, Abram, 1980. "Consumer's surplus and income redistribution," Journal of Public Economics, Elsevier, vol. 14(1), pages 31-47, August.
    8. Boadway, Robin & Horiba, Isao & Jha, Raghbendra, 1999. "The Provision of Public Services by Government Funded Decentralized Agencies," Public Choice, Springer, vol. 100(3-4), pages 157-184, September.
    9. Davis, Michael L & Hayes, Kathy, 1993. "The Demand for Good Government," The Review of Economics and Statistics, MIT Press, vol. 75(1), pages 148-152, February.
    10. Borjas, George J, 1999. "Immigration and Welfare Magnets," Journal of Labor Economics, University of Chicago Press, vol. 17(4), pages 607-637, October.
    11. Enchautegui, Maria E, 1997. "Welfare Payments and Other Economic Determinants of Female Migration," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages 529-554, July.
    12. Blank, Rebecca M., 1988. "The effect of welfare and wage levels on the location decisions of female-headed households," Journal of Urban Economics, Elsevier, vol. 24(2), pages 186-211, September.
    13. Duncombe, William & Miner, Jerry & Ruggiero, John, 1997. "Empirical Evaluation of Bureaucratic Models of Inefficiency," Public Choice, Springer, vol. 93(1-2), pages 1-18, October.
    14. Dahlby, Bev, 1998. "Progressive taxation and the social marginal cost of public funds," Journal of Public Economics, Elsevier, vol. 67(1), pages 105-122, January.
    15. Jan K. Brueckner, 1999. "Welfare Reform and the Race to the Bottom: Theory and Evidence," Southern Economic Journal, John Wiley & Sons, vol. 66(2), pages 505-525, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bessho, Shun-ichiro & Ogawa, Hikaru, 2015. "Fiscal adjustment in Japanese municipalities," Journal of Comparative Economics, Elsevier, vol. 43(4), pages 1053-1068.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lars P. Feld, 2000. "Fiskalischer Wettbewerb und Einkommensumverteilung," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 1(2), pages 181-198, May.
    2. Snarr, Hal W. & Burkey, Mark L., 2006. "A Preliminary Investigation of Welfare Migration Induced by Time Limits," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 36(2), pages 1-16.
    3. Sören Blomquist & Luca Micheletto, 2009. "Nonlinear Income Taxation And Matching Grants In A Federation With Decentralized In-Kind Transfers," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 50(2), pages 543-575, May.
    4. McKinnish, Terra, 2007. "Welfare-induced migration at state borders: New evidence from micro-data," Journal of Public Economics, Elsevier, vol. 91(3-4), pages 437-450, April.
    5. María Martínez Torres, "undated". "Flujos migratorios interregionales en Espana: Un modelo de ecuaciones simultáneas," Studies on the Spanish Economy 207, FEDEA.
    6. Assaf Razin & Jackline Wahba, 2015. "Welfare Magnet Hypothesis, Fiscal Burden, and Immigration Skill Selectivity," Scandinavian Journal of Economics, Wiley Blackwell, vol. 117(2), pages 369-402, April.
    7. FIGUIÈRES, Charles & HINDRIKS, Jean & MYLES, Gareth D., 2001. "Revenue sharing versus expenditure sharing," LIDAM Discussion Papers CORE 2001015, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    8. Neumark, David & Powers, Elizabeth T., 2005. "SSI, Labor Supply, and Migration," IZA Discussion Papers 1820, Institute of Labor Economics (IZA).
    9. Sigrid Roehrs & David Stadelmann, 2010. "Mobility and local income redistribution," Working Papers 2010/4, Institut d'Economia de Barcelona (IEB).
    10. Dahlberg, Matz & Edmark, Karin, 2008. "Is there a "race-to-the-bottom" in the setting of welfare benefit levels? Evidence from a policy intervention," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 1193-1209, June.
    11. Ronel Elul & Narayanan Subramanian, 2002. "Forum-Shopping and Personal Bankruptcy," Journal of Financial Services Research, Springer;Western Finance Association, vol. 21(3), pages 233-255, June.
    12. Kangoh Lee, 2007. "Does Mobility Undermine Income Redistribution? A Political-Support Approach to Redistribution in a Federation," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 63(2), pages 186-210, June.
    13. Kaestner, Robert & Kaushal, Neeraj & Van Ryzin, Gregg, 2003. "Migration consequences of welfare reform," Journal of Urban Economics, Elsevier, vol. 53(3), pages 357-376, May.
    14. Edward L. Glaeser, 2012. "Urban Public Finance," NBER Working Papers 18244, National Bureau of Economic Research, Inc.
    15. Nakazawa, Katsuyoshi & 中澤, 克佳 & ナカザワ, カツヨシ & Kawase, Akihiro & 川瀬, 晃弘 & カワセ, アキヒロ, 2009. "An Empirical Analysis of the Welfare Magnet: Aged Care Provision and Migration in Japan," PIE/CIS Discussion Paper 412, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
    16. Brian Cushing, 2005. "The Role of Welfare and Space in the Migration of the Poor," Working Papers Working Paper 2005-08, Regional Research Institute, West Virginia University.
    17. repec:rri:wpaper:200508 is not listed on IDEAS
    18. Howard Chernick, 2010. "Redistribution at the State and Local Level: Consequences for Economic Growth," Public Finance Review, , vol. 38(4), pages 409-449, July.
    19. Akihiro Kawase & Katsuyoshi Nakazawa, 2009. "Long-term Care Insurance Facilities and Interregional Migration of the Elderly in Japan," Economics Bulletin, AccessEcon, vol. 29(4), pages 2981-2995.
    20. Jan K. Brueckner, 2000. "Welfare Reform and the Race to the Bottom: Theory and Evidence," Southern Economic Journal, John Wiley & Sons, vol. 66(3), pages 505-525, January.
    21. Wheaton, William C., 2000. "Decentralized Welfare: Will There Be Underprovision?," Journal of Urban Economics, Elsevier, vol. 48(3), pages 536-555, November.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mof:journl:ppr007b. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Policy Research Institute (email available below). General contact details of provider: https://edirc.repec.org/data/prigvjp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.