A model of government expenditure considering Tiebout’s proposals
Keywords:
Local Public Expenditure, Tiebout Hypothesis, Fiscal Decentralization, Efficiency, DistributionAbstract
The Theory of Local Public Expenditures is conceived formally from Tiebout’s hypothesis in 1956. The consideration of a mechanism for the preference revelation of the public goods brought a positive argument to the fiscal decentralization. This essay parts from Tiebout’s Hypothesis to examine the conditions under which it is still analytically valid. Using tools of mathematical formalization, a Local Public Expenditures Model is proposed, which analyzes entirely, the conditions of a decentralized government in terms of its assignation and distribution functions.Downloads
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