Bulletin n. 3/2008 | ||
February 2009 | ||
Berry Christopher |
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Piling On: Multilevel Government and the Fiscal Common-Pool | ||
in American Journal of Political Science , Vol. 52, Issue 4 , 2008 , 802-820 | ||
This article discusses the common-pool problems that arise when multiple territorially overlapping governments share the authority to provide services and levy taxes in a common geographic area. Contrary to the traditional Tiebout model in which increasing the number of competing governments improves efficiency, I argue that increasing the number of overlapping governments results in "overfishing" from the shared tax base. I test the model empirically using data from U.S. counties and find a strong positive relationship between the number of overlapping jurisdictions and the size of the local public sector. Substantively, the "overlap effect" amounts to roughly 10% of local revenue. | ||