BUYING THEIR VOTES? A STUDY OF LOCAL TAX-PRICE DISCRIMINATION

C-Tier
Journal: Economic Inquiry
Year: 2015
Volume: 53
Issue: 3
Pages: 1451-1469

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

A population's demographic composition may affect political support for various public services. This article examines whether the aging-in-place of local residents decreases financial support for public schools in the United States. I expand on previous empirical work by examining whether tax-price reductions offered to elderly homeowners moderate their effect on local school revenues. The results reveal that an aging population structure substantially decreases school revenues, unless elderly homeowners receive state-financed reductions in their local tax-prices. Sizable differences hold even when comparing school districts located near each other but on opposite sides of state borders. Given the imminent aging of the population structure in the United States and many other developed countries, governments' targeted tax reduction policies could have important effects on equilibrium school revenues</fi>. (<fi>JEL</fi> I22, J14, H71)

Technical Details

RePEc Handle
repec:bla:ecinqu:v:53:y:2015:i:3:p:1451-1469
Journal Field
General
Author Count
1
Added to Database
2026-01-29