Subsidies as sorting devices |
| |
Authors: | William H Hoyt Kangoh Lee |
| |
Institution: | a Department of Economics and Martin School of Public Policy, Gatton College of Business and Economics, Lexington, KY 40506, USA;b Department of Economics, Towson University, Towson, MD 21252, USA |
| |
Abstract: | The divergence between tax payments and the cost of providing public services that arise from financing local public services provides an incentive for higher-income communities to deter the entry of lower-income households into their community. Here we demonstrate that higher-income households, to insure that low-income households do not enter their community or reduce the number that do enter, subsidize goods consumed by higher-income households more than by lower-income households. This strategy will make the rich community less attractive to the poor, deterring their entry to the community. |
| |
Keywords: | JEL classification codes: H7 H4 |
本文献已被 ScienceDirect 等数据库收录! |
|