The Henry George Theorem in a second-best world
Kristian Behrens (),
Yoshitsugu Kanemoto and
No 14-11, GRIPS Discussion Papers from National Graduate Institute for Policy Studies
The Henry George Theorem (HGT) states that, in first-best economies, the fiscal surplus of a city government that finances the Pigouvian subsidies for agglomeration externalities and the costs of local public goods by a 100% tax on land is zero at optimal city sizes. We extend the HGT to distorted economies where product differentiation and increasing returns are the sources of agglomeration economies and city governments levy property taxes. Without relying on specific functional forms, we derive a second-best HGT that relates the fiscal surplus to the excess burden expressed as an extended Harberger formula.
Pages: 41 pages
New Economics Papers: this item is included in nep-his, nep-pbe and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Journal Article: The Henry George Theorem in a second-best world (2015)
Working Paper: The Henry George Theorem in a second-best world (2010)
Working Paper: The Henry George Theorem in A Second-Best World (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ngi:dpaper:14-11
Access Statistics for this paper
More papers in GRIPS Discussion Papers from National Graduate Institute for Policy Studies Contact information at EDIRC.
Bibliographic data for series maintained by ().