A Computable General Equilibrium Model of Intergovernmental Aid / Thomas J. Nechyba.

By:

Nechyba, Thomas J

Contributor(s):

National Bureau of Economic Research

Material type: Text

TextSeries: Working Paper Series (National Bureau of Economic Research) ; no. w5420.Publication details: Cambridge, Mass. National Bureau of Economic Research 1996.Description: 1 online resource: illustrations (black and white)Subject(s):

H7 - State and Local Government • Intergovernmental Relations

Online resources:

Available additional physical forms:

Hardcopy version available to institutional subscribers

Abstract: This paper introduces a computable general equilibrium model of intergovernmental relations in which heterogeneous agents (i) are endowed with income and houses, (ii) are fully mobile between multiple jurisdictions, and (iii) vote in both local and state elections to determine local property and state income tax rates. The model is calibrated to New Jersey micro tax data and used to study the general equilibrium effects of state government policies. Three different types of intergovernmental programs are analyzed: (i) redistributive revenue sharing, (ii) district power equalization and (iii) deductibility of local taxes. The approach facilitates a heretofore difficult comparative analysis in that it provides for an integrated investigation of these programs in a single general equilibrium model.

Tags from this library: No tags from this library for this title. Log in to add tags.

Average rating: 0.0 (0 votes)

Holdings
Item type	Home library	Collection	Call number	Status	Date due	Barcode	Item holds
Working Paper	Biblioteca Digital	Colección NBER	nber w5420 (Browse shelf(Opens below))	Not For Loan

Total holds: 0

Collection: Colección NBER Close shelf browser (Hides shelf browser)

Previous	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	Next
Previous	nber w5417 Wage Dispersion and Technical Progress /	nber w5418 The Effect of Pharmaceutical Utilization and Innovation on Hospitalization and Mortality /	nber w5419 Local Property and State Income Taxes: The Role of Interjurisdictional Competition and Collusion /	nber w5420 A Computable General Equilibrium Model of Intergovernmental Aid /	nber w5421 Tariff Phase-Outs: Theory and Evidence from GATT and NAFTA /	nber w5422 How Well do Foreign Exchange Markets Function: Might a Tobin Tax Help? /	nber w5423 Repeat Use of Unemployment Insurance /	Next

January 1996.

This paper introduces a computable general equilibrium model of intergovernmental relations in which heterogeneous agents (i) are endowed with income and houses, (ii) are fully mobile between multiple jurisdictions, and (iii) vote in both local and state elections to determine local property and state income tax rates. The model is calibrated to New Jersey micro tax data and used to study the general equilibrium effects of state government policies. Three different types of intergovernmental programs are analyzed: (i) redistributive revenue sharing, (ii) district power equalization and (iii) deductibility of local taxes. The approach facilitates a heretofore difficult comparative analysis in that it provides for an integrated investigation of these programs in a single general equilibrium model.