How can one use the results derived in Sections 3 and 4? The type of use one can make in theoretical voting analysis was suggested in Section 4 already. Comparative statics results on how desired budget levels vary with tax system parameters (such as number of exemptions, size of tax credits,...

The traditional median voter model predicts that median income and taxprice are the primary determinants of local school spending levels. It further implies that lump-sum grants wills be utilized like private income, and thus income and grant coefficients should be the same. Our comprehensive...