Redistributive state aid to local communities

  • de Bartolome C
  • 1


    Mendeley users who have this article in their library.
  • 2


    Citations of this article.


State aid to communities is used for redistribution and is limited by self-selection - a wealthy household in the taxed community must not benefit from migration into the community of poor households which receives the transfer. In the community of poor households, I show that state aid should subsidize the public services for which an in-migrating wealthy household would buy a private substitute, and should tax housing; it is likely that other public services should also be taxed. However, all aid to the community of wealthy households should be lump-sum. I use these predictions to qualitatively explain the New York State educational aid formula. © 1991.

Get free article suggestions today

Mendeley saves you time finding and organizing research

Sign up here
Already have an account ?Sign in

Find this document


  • Charles A.M. de Bartolome

Cite this document

Choose a citation style from the tabs below

Save time finding and organizing research with Mendeley

Sign up for free