Fiscal Federalism, Social Mobility, and Poverty Alleviation: Essays in Political Economy
Dorsch, Michael T.
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https://hdl.handle.net/2142/85591
Description
Title
Fiscal Federalism, Social Mobility, and Poverty Alleviation: Essays in Political Economy
Author(s)
Dorsch, Michael T.
Issue Date
2008
Doctoral Committee Chair(s)
Gahvari, Firouz
Department of Study
Economics
Discipline
Economics
Degree Granting Institution
University of Illinois at Urbana-Champaign
Degree Name
Ph.D.
Degree Level
Dissertation
Keyword(s)
Economics, Theory
Language
eng
Abstract
The third essay on poverty alleviation treats welfare transfers as a public good which eliminates the public bad of poverty. Local governments establish minimum consumption thresholds for the poor, financed by proportional income taxation. Despite the fact that income transfers are negative for a majority of voters, redistribution to the poor is present in the political equilibrium due to the public good property of poverty alleviation. Using county-level demographic and government expenditure data from the US Census, I find empirical evidence to support the comparative static predictions of the model.
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