POL SCI 165 Lecture Notes - Land Values, Public Choice
Document Summary
Ideally, jurisdictional competition will force the hand of government to behave more. Efficiently" because it creates competition among local municipalities: middle and upper income groups and economic development projects are linked to the resource potential of jurisdictions, they are perceived to increase or add to the tax base of jurisdictions. Drawing on the theory of public choice, "polycentric competition" is based on the. Capital is mobile: cities/suburbs are constrained by market economy to compete for residents and jobs or suffer economic decline. Assumes that businesses and individuals will move to a jurisdiction with lower taxation, so that residents in local jurisdictions will sort out by local taxation regimens. High income residents and business firms are important to communities because they affect the size of the local property tax base, which in turn leads to improved local services, lower tax rates, or both.
