Decentralized School Finance and Metropolitan Suburbanization∗
نویسندگان
چکیده
The residential patterns across the metropolitan areas have changed notably since 1950s; The population has suburbanized and the poor now live closer to the city center. The recent research by urban economists finds that the income elasticity of land demand is too low to explain the poor’s urbanization, which mainly comes from better access to public transportation in cities. We take the new findings seriously and develop a new hybrid Tiebout-Alonso model by explicitly introducing (i) a public transportation as an alternative mode of commute to automobile, and (ii) a housing production function that allows us to work with the income elasticity of land demand directly. We later extend the model in several other directions, including an extended model with a decentralized employment centers. Our model finds that the neighborhood amenities (i.e education and property taxes) have substantial effect on the residential patterns across metropolitan areas that cannot be ignored, and produces some testable predictions. JEL Primary Field Name: Public Finance JEL Classification: H4, H7, I2
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