Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
IDEAS home Printed from https://ideas.repec.org/a/sae/pubfin/v4y1976i4p479-492.html
   My bibliography  Save this article

Tax Islands, Fiscal Equity, and Fiscal Equalization

Author

Listed:
  • Robert W. Gilmer

    (Institute for Defense Analyses Arlington, Virginia)

Abstract

Equalization of the tax bases of a federal system has been approached by the economic literature from the perspectives of both equity and Abstract efficiency. These arguments for equalization have generally assumed unrestricted mobility among residents of the federalism. A third approach is considered in this paper, in which it is argued that districts within a federal system may develop as tax shelters (or tax islands or tax colonies) to reduce the tax burden of their residents. The approach employed here moves away from the more traditional models by not incorporating an assumption of unrestricted residential choice. The tax island is seen as a case of the fiscally rich successfully disassociating themselves from the fiscally poor. The formulation yields insight into the limitations and advantages of fiscal equalization policies.

Suggested Citation

  • Robert W. Gilmer, 1976. "Tax Islands, Fiscal Equity, and Fiscal Equalization," Public Finance Review, , vol. 4(4), pages 479-492, October.
    • Handle: RePEc:sae:pubfin:v:4:y:1976:i:4:p:479-492
    DOI: 10.1177/109114217600400407
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/109114217600400407
    Download Restriction: no
    File URL: https://libkey.io/10.1177/109114217600400407?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. Jerome Rothenberg, 1970. "Local Decentralization and the Theory of Optimal Government," NBER Chapters, in: The Analysis of Public Output, pages 31-68, National Bureau of Economic Research, Inc.
    2. McGuire, Martin, 1974. "Group Segregation and Optimal Jurisdictions," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 112-132, Jan.-Feb..
    3. Richard A. Musgrave, 1961. "Approaches to a Fiscal Theory of Political Federalism," NBER Chapters, in: Public Finances: Needs, Sources, and Utilization, pages 97-134, National Bureau of Economic Research, Inc.
    4. James M. Buchanan & Richard E. Wagner, 1970. "An Efficiency Basis for Federal Fiscal Equalization," NBER Chapters, in: The Analysis of Public Output, pages 139-162, National Bureau of Economic Research, Inc.
    5. Julius Margolis, 1970. "The Analysis of Public Output," NBER Books, National Bureau of Economic Research, Inc, number marg70-1, January.
    6. Charles M. Tiebout, 1961. "An Economic Theory of Fiscal Decentralization," NBER Chapters, in: Public Finances: Needs, Sources, and Utilization, pages 79-96, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    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. Sandler, Todd & Tschirhart, John T, 1980. "The Economic Theory of Clubs: An Evaluative Survey," Journal of Economic Literature, American Economic Association, vol. 18(4), pages 1481-1521, December.
    2. Albouy, David, 2012. "Evaluating the efficiency and equity of federal fiscal equalization," Journal of Public Economics, Elsevier, vol. 96(9-10), pages 824-839.
    3. Robert D. Tollison & Thomas D. Willett, 1978. "Fiscal Federalism: a Voting System Where Spillovers Taper Off Spatially," Public Finance Review, , vol. 6(3), pages 327-342, July.
    4. Peter S. Fisher, 1981. "State Equalizing Aids and Metropolitan Tax Base Sharing: A Comparative Analysis," Public Finance Review, , vol. 9(4), pages 449-470, October.
    5. Martinez-Vazquez, Jorge & Rider, Mark & Walker, Mary Beth, 1997. "Race and the Structure of School Districts in the United States," Journal of Urban Economics, Elsevier, vol. 41(2), pages 281-300, March.
    6. Woo Sik Kee, 1977. "Fiscal Decentralization and Economic Development," Public Finance Review, , vol. 5(1), pages 79-97, January.
    7. Donna Driscoll & Dennis Halcoussis & Anton D. Lowenberg, 2010. "Explaining Local Growth-Management Policies: The Role of Public Goods," American Journal of Economics and Business Administration, Science Publications, vol. 2(1), pages 45-55, March.
    8. D. K. Srivastava, 2006. "Equalizing Health and Education : Approach of the Twelfth Finance Commission," Finance Working Papers 22517, East Asian Bureau of Economic Research.
    9. Laaser, Claus-Friedrich & Stehn, Jürgen, 1995. "Perspektiven der sozialen Marktwirtschaft - mehr Effizienz durch eine föderative Arbeitsteilung," Kiel Working Papers 680, Kiel Institute for the World Economy (IfW Kiel).
    10. Konishi, Hideo, 2008. "Tiebout's tale in spatial economies: Entrepreneurship, self-selection, and efficiency," Regional Science and Urban Economics, Elsevier, vol. 38(5), pages 461-477, September.
    11. Sergey Sinelnikov & Pavel Kadochnikov & Ilya Trunin, 2008. "From Elections to Appointments of the Regional Governors: Major Challenges and Outcomes," Published Papers 2, Gaidar Institute for Economic Policy, revised 2008.
    12. Schäfer Wolf, 2007. "Europäische Union: Erweiterung cum Vertiefung? Erweiterung versus Vertiefung! / European Union: Enlarging cum Deepening? Enlarging versus Deepening!," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 58(1), pages 51-66, January.
    13. Stehn, Jürgen, 1993. "Theorie des fiskalischen Föderalismus: Ein Referenzmaßstab zur Beurteilung der Beschlüsse von Maastricht," Open Access Publications from Kiel Institute for the World Economy 1898, Kiel Institute for the World Economy (IfW Kiel).
    14. Wallace E. Oates, 2006. "On the Theory and Practice of Fiscal Decentralization," Working Papers 2006-05, University of Kentucky, Institute for Federalism and Intergovernmental Relations.
    15. Harvey S. Perloff, 1973. "The Development of Urban Economics in the United States," Urban Studies, Urban Studies Journal Limited, vol. 10(3), pages 289-301, October.
    16. Sven Wardenburg & Thomas Brenner, 2020. "How to improve the quality of life in peripheral and lagging regions by policy measures? Examining the effects of two different policies in Germany," Journal of Regional Science, Wiley Blackwell, vol. 60(5), pages 1047-1073, November.
    17. Wellisch, Dietmar & Wildasin, David E., 1996. "Decentralized income redistribution and immigration," European Economic Review, Elsevier, vol. 40(1), pages 187-217, January.
    18. Morris Silver, 1977. "Economic theory of the constitutional separation of powers," Public Choice, Springer, vol. 29(1), pages 95-107, March.
    19. Lars Feld, 2014. "James Buchanan’s theory of federalism: from fiscal equity to the ideal political order," Constitutional Political Economy, Springer, vol. 25(3), pages 231-252, September.
    20. Jonathan Pincus, 2011. "Examining Horizontal Fiscal Equalisation in Australia," School of Economics and Public Policy Working Papers 2011-25, University of Adelaide, School of Economics and Public Policy.

    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:4:y:1976:i:4:p:479-492. 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.