Journal Of The Econometric Society

An International Society for the Advancement of Economic
Theory in its Relation to Statistics and Mathematics

Edited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262

Econometrica: Sep, 1982, Volume 50, Issue 5

Fiscal Incidence at the Local Level<1207:FIATLL>2.0.CO;2-M
p. 1207-1218

Jorge Martinez-Vazquez

This paper studies the fiscal (benefit and tax) incidence of a local budget by comparing the distributional impacts of Lindahl and Bowen solutions. The median voter methodology is used to estimate net benefits for different income groups from the St. Louis city 1972 budget. The results indicate a progressive or pro-poor distributional impact. The distribution of fiscal incidence for population grouping other than income is also explored.

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