Econometrica: Sep 1982, Volume 50, Issue 5

Fiscal Incidence at the Local Level<1207:FIATLL>2.0.CO;2-M
p. 1207-1218

Jorge Martinez-Vazquez

This paper studies the fiscal (benefit and tax) incidence of a local budget by comparing the distributional impacts of Lindahl and Bowen solutions. The median voter methodology is used to estimate net benefits for different income groups from the St. Louis city 1972 budget. The results indicate a progressive or pro-poor distributional impact. The distribution of fiscal incidence for population grouping other than income is also explored.

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