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Fiscal Fragmentation and the Distribution of Metropolitan Area Resources: A Case Study

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  • Seth B. Sacher

    (Federal Trade Commission, Washington, DC, 20580, USA)

Abstract

This paper estimates the incidence of local taxes and expenditures and the distribution of income in metropolitan Washington, DC, under our current fragmented system of governing metropolitan areas and under a hypothetical metropolitan-wide regime. The purpose of this exercise is to consider how the distribution of metropolitan resources might differ had society evolved toward a unified form of metropolitan governance. It is found that tax and expenditure incidence and the distribution of income are strikingly similar under both systems. From an equity perspective, neither the current fragmented system nor a unified system emerges as a clearly superior form of metropolitan organisation.

Suggested Citation

  • Seth B. Sacher, 1993. "Fiscal Fragmentation and the Distribution of Metropolitan Area Resources: A Case Study," Urban Studies, Urban Studies Journal Limited, vol. 30(7), pages 1225-1239, August.
  • Handle: RePEc:sae:urbstu:v:30:y:1993:i:7:p:1225-1239
    DOI: 10.1080/00420989320081141
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    References listed on IDEAS

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    1. Oates, Wallace E, 1969. "The Effects of Property Taxes and Local Public Spending on Property Values: An Empirical Study of Tax Capitalization and the Tiebout Hypothesis," Journal of Political Economy, University of Chicago Press, vol. 77(6), pages 957-971, Nov./Dec..
    2. Mieszkowski, Peter, 1972. "The property tax: An excise tax or a profits tax?," Journal of Public Economics, Elsevier, vol. 1(1), pages 73-96, April.
    3. Behrman, Jere R & Craig, Steven G, 1987. "The Distribution of Public Services: An Exploration of Local Governmental Preferences," American Economic Review, American Economic Association, vol. 77(1), pages 37-49, March.
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