tailieunhanh - Lecture note Public finance (10th Edition) - Chapter 22: Public finance in a federal system

In this chapter, the following content will be discussed: In a federal system of government, different governments provide difference services, although advantages and disadvantages of centralized government exist; the club model of community formation indicates that community size and quantity of public goods depend on tastes; according to the Tiebout model, a Pareto efficient allocation of public goods is possible under certain conditions through “voting with your feet”;. | PUBLIC FINANCE IN A FEDERAL SYSTEM Chapter 22 Background Federal system Fiscal federalism Centralization Centralization ratio = Central government expenditures Total government expenditures 22- Distribution of All . Expenditures by Government Level 22- Source: Figures for 1900 through 1980 are from Pommerehne [1977]. Figures after 1980 are computed from various editions of the US Bureau of the Census, Statistical Abstracts of the United States , and from US Bureau of the Census [2012b]. Community Formation Club – voluntary association of people who band together to finance and share some benefit Optimal Club (or community) 22- The Tiebout Model Voting with your feet Tiebout’s assumptions Government activities generate no externalities Individuals are completely mobile People have perfect information with respect to each community’s public services and taxes There are enough different communities so that each individual can find one with public services | PUBLIC FINANCE IN A FEDERAL SYSTEM Chapter 22 Background Federal system Fiscal federalism Centralization Centralization ratio = Central government expenditures Total government expenditures 22- Distribution of All . Expenditures by Government Level 22- Source: Figures for 1900 through 1980 are from Pommerehne [1977]. Figures after 1980 are computed from various editions of the US Bureau of the Census, Statistical Abstracts of the United States , and from US Bureau of the Census [2012b]. Community Formation Club – voluntary association of people who band together to finance and share some benefit Optimal Club (or community) 22- The Tiebout Model Voting with your feet Tiebout’s assumptions Government activities generate no externalities Individuals are completely mobile People have perfect information with respect to each community’s public services and taxes There are enough different communities so that each individual can find one with public services meeting her demands The cost per unit of public services is constant so that if the quantity of public services doubles, the total cost also doubles Public services are financed by a proportional property tax Communities can enact exclusionary zoning laws—statutes that prohibit certain uses of land 22- Tiebout and the Real World Critique of Tiebout Empirical tests 22- Optimal Federalism What is the optimal allocation of economic responsibilities among levels of government? Macroeconomic functions Microeconomic functions 22- Disadvantages of a Decentralized System Efficiency issues Externalities Local public good Scale economies in provision of public goods Inefficient tax systems Scale economies in tax collection Equity issues 22- Advantages of a Decentralized System Tailoring outputs to local taxes Fostering intergovernmental competition Experimentation and information in locally provided goods and services 22- Implications Purely decentralized

• Tài chính doanh nghiệp
• Public finance
• Lecture Public finance
• Public Economics
• Public finance
• Federal system
• Fiscal federalism
• Public expenditure
• Public good
• Public spending
• Public education
• Tiebout model
• Public sector economics
• Federal government
• The corporation tax
• Tax equity
• Public goods
• Public services
• Inflation taxation
• Education Increase Earnings
• Public education improves quality
• Interpreting deficit
• Burden of the debt
• Neoclassical model
• Political economy
• Median voter model
• Special interest
• Public economy
• Legal framework
• Local governments
• Market mechanism
• Coase Theorem
• Public Responses
• Public employees
• Representative democracy
• Tools of positive analysis
• Positive analysis
• Empirical work
• Normative analysis
• Tools of normative analysis
• Welfare economics
• Nature of externalities
• Graphical analysis
• Cost benefit analysis
• Internal rate
• Benefit cost ratio
• Health care market
• Social insurance
• Risk pooling
• Moral hazard
• Market for health care
• Private health insurance
• Health insurance
• Social security
• Benefit structure
• Savings behavior
• Income redistribution
• Distributional dataissues
• Income inequality
• Expenditure programs
• Expenditure programs for the poor
• Work incentives
• Income distribution
• Tax incidence
• Partial equilibrium models
• Tax on consumption bundle
• Excess burden
• Demand curves
• Equitable taxation
• Optimal commodity taxation
• The ramsey rule
• Personal income tax
• Haig simons income
• Capital gains
• Personal taxation
• Human capital accumulation
• Labor supply