The productivity of schools and other local public goods producers *

@inproceedings{Hoxby1999ThePO,
  title={The productivity of schools and other local public goods producers *},
  author={Caroline M. Hoxby},
  year={1999}
}
  • Caroline M. Hoxby
  • Published 1999
I construct an agency model of local public goods producers in which households make Tiebout choices among jurisdictions in a world of imperfect information and costly residential mobility. I examine producers’ effort and rent under local property tax finance and centralized finance. I show that, if there are a sufficient number of jurisdictions, conventional local property tax finance can attain about as much productivity as a social planner with centralized finance can, even if the social… CONTINUE READING
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