IDEAS home Printed from https://ideas.repec.org/a/sae/pubfin/v6y1978i1p93-114.html
   My bibliography  Save this article

Local Taxes and Industrial Location

Author

Listed:
  • William Franklin Fox

    (Department of Agriculture)

Abstract

A model is developed which focuses on the relationship between fiscal variables and industrial location. Industrial location decisions are hypothesized to be made within a system of supply and demand. On the supply side, communities determine the optimal level of industrial activity based on a trade-off between tax revenues and the local environment. Firms choose between sites so as to minimize costs. The marginal prices of education and environment faced by communities are derived, and from these we get a supply of industrial sites equation which reveals how much industry a given community would be willing to accept. One conclusion is that the community's behavior in the setting of tax rates, business services, and zoning can have significant impacts on the location of industry. Another result is that the property tax is not an excess burden, but allows efficient market principles to be applied to the location of industry.

Suggested Citation

  • William Franklin Fox, 1978. "Local Taxes and Industrial Location," Public Finance Review, , vol. 6(1), pages 93-114, January.
    • Handle: RePEc:sae:pubfin:v:6:y:1978:i:1:p:93-114
    DOI: 10.1177/109114217800600105
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/109114217800600105
    Download Restriction: no
    File URL: https://libkey.io/10.1177/109114217800600105?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Barlow, Robin, 1970. "Efficiency Aspects of Local School Finance," Journal of Political Economy, University of Chicago Press, vol. 78(5), pages 1028-1040, Sept.-Oct.
    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. Johnson, Thomas G., 1990. "Measuring Economic Impacts of Transportation," Staff Papers 232544, Virginia Polytechnic Institute and State University, Department of Agricultural and Applied Economics.

    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. Barrow, Lisa & Rouse, Cecilia Elena, 2004. "Using market valuation to assess public school spending," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 1747-1769, August.
    2. Randall Holcombe, 2005. "Government growth in the twenty-first century," Public Choice, Springer, vol. 124(1), pages 95-114, July.
    3. Hong Yih Chu, 2001. "The optimal supply of public goods in collective choice," Applied Economics, Taylor & Francis Journals, vol. 33(7), pages 823-827.
    4. Falch, Torberg & Rattso, Jorn, 1999. "Local public choice of school spending: disaggregating the demand function for educational services," Economics of Education Review, Elsevier, vol. 18(3), pages 361-373, June.
    5. Daniel E. Ingberman & Robert P. Inman, 1987. "The Political Economy of Fiscal Policy," NBER Working Papers 2405, National Bureau of Economic Research, Inc.
    6. Bonesronning, Hans & Falch, Torberg & Strom, Bjarne, 2005. "Teacher sorting, teacher quality, and student composition," European Economic Review, Elsevier, vol. 49(2), pages 457-483, February.
    7. Theodore C. Bergstrom & Judith Roberts & Daniel L. Rubinfeld & Perry Shapiro, 1986. "The Efficiency of the Supply of Public Education," NBER Working Papers 1901, National Bureau of Economic Research, Inc.
    8. Robert P. Inman, 1987. "Federal Assistance and Local Services in the United States: The Evolution of a New Federalist Fiscal Order," NBER Working Papers 2283, National Bureau of Economic Research, Inc.
    9. Randall Holcombe, 1989. "The median voter model in public choice theory," Public Choice, Springer, vol. 61(2), pages 115-125, May.
    10. Maital, Shlomo, 1976. "Measurement of Benefits from Government Services Using Survey Data: A New Approach," Foerder Institute for Economic Research Working Papers 275317, Tel-Aviv University > Foerder Institute for Economic Research.
    11. Hervé Crès & Mich Tvede, 2005. "Portfolio Diversification and Internalization of Production Externalities through Majority Voting," Working Papers hal-00587205, HAL.
    12. Caroline Minter Hoxby, 1994. "Do Private Schools Provide Competition for Public Schools?," NBER Working Papers 4978, National Bureau of Economic Research, Inc.
    13. Marie-Estelle Binet & Jean-Sébastien Pentecôte, 2006. "Structure de l'impôt et cycle électoral au plan municipal," Economie & Prévision, La Documentation Française, vol. 0(3), pages 113-127.
    14. Becker, Elizabeth & Lindsay, Cotton M, 1994. "Does the Government Free Ride?," Journal of Law and Economics, University of Chicago Press, vol. 37(1), pages 277-296, April.
    15. Randall Holcombe & Steven Caudill, 1985. "Tax shares and government spending in a median voter model," Public Choice, Springer, vol. 46(2), pages 197-205, January.
    16. Bruno S. Frey & Marcel Kucher & Alois Stutzer, "undated". "Outcome, Process & Power in Direct Democracy," IEW - Working Papers 025, Institute for Empirical Research in Economics - University of Zurich.
    17. Miller, Cynthia, 1996. "Demographics and spending for public education: a test of interest group influence," Economics of Education Review, Elsevier, vol. 15(2), pages 175-185, April.
    18. repec:eee:labchp:v:1:y:1986:i:c:p:357-386 is not listed on IDEAS
    19. Lisa Barrow & Cecilia Elena Rouse, 2000. "Using Market Valuation to Assess the Importance and Efficiency of Public School Spending," Econometric Society World Congress 2000 Contributed Papers 1446, Econometric Society.
    20. Randall G. Holcombe, 2023. "The transformative impact of rent-seeking theory on the study of public choice," Public Choice, Springer, vol. 196(1), pages 157-167, July.
    21. Ted Bergstrom & Judy Roberts & Dan Rubinfeld & Perry Shapiro, 1988. "A Test for Efficiency in the Supply of Local Public Education," Papers _036, University of Michigan, Department of Economics.

    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:sae:pubfin:v:6:y:1978:i:1:p:93-114. 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: SAGE Publications (email available below). General contact details of provider: .

    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.