The Henry George Theorem in a second-best world

Autor:	Yasusada Murata, Yoshitsugu Kanemoto, Kristian Behrens
Rok vydání:	2015
Předmět:	Urban Studies Macroeconomics Economics and Econometrics Monopolistic competition Returns to scale Financial economics Economies of agglomeration Economics Henry George theorem Subsidy Product differentiation Public good Externality
Zdroj:	Journal of Urban Economics. 85:34-51
ISSN:	0094-1190
DOI:	10.1016/j.jue.2014.10.002
Popis:	The Henry George Theorem (HGT) states that, in first-best economies, the fiscal surplus of a city government that finances the Pigouvian subsidies for agglomeration externalities and the costs of local public goods by a 100% tax on land is zero at optimal city sizes. We extend the HGT to distorted economies where product differentiation and increasing returns are the sources of agglomeration economies and city governments levy property taxes. Without relying on specific functional forms, we derive a second-best HGT that relates the fiscal surplus to the excess burden expressed as an extended Harberger formula.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::09fb7ed44bf0762db35537ba47f4dd13 https://doi.org/10.1016/j.jue.2014.10.002 Zobrazit plný text záznamu Full Text from ScienceDirect