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Preprints, Working Papers, ... Year : 2017

Welfarism and segregation in endogenous jurisdiction formation models

Rémy Oddou
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Abstract

This paper analyses how welfarism affects the segregative properties of endogenous jurisdiction formation, in a model where local jurisdictions produce a local public good and distribute an allowance to their households, both financed by a proportional tax based on the households' wealth. A jurisdiction is composed of all the households that live in the same place. Local wealth tax rates and the level of the allowance are determined to maximize a social welfare function. Households can "vote with their feet", which means that they can choose to move to the jurisdiction that offers the package "tax rate - amount of public good - allowance" that provides the highest utility level. The main result of this article is the proof that the maximin criterium is more segregative than the utilitarian one.
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Dates and versions

hal-04141624 , version 1 (26-06-2023)

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  • HAL Id : hal-04141624 , version 1

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Rémy Oddou. Welfarism and segregation in endogenous jurisdiction formation models. 2017. ⟨hal-04141624⟩
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