throughout the nation. Nonetheless, permitting local social welfare functions
gives localities a say in determining how much inequality a society will allow.
We will return to the eVect of mobility on local redistributions in Chapter 30.
REFERENCES
Buchanan, J., ``An Economic Theory of Clubs,'' Economica, February 1965.
Oates, W., Fiscal Federalism, Harcourt Brace Jovanovich, New York, 1972.
Pauly, M., ``A Model of Local Government Expenditure and Tax Capitalization,'' Journal of
Public Economics, October 1976.
Stigler, G., ``Tenable Range of Functions of Local Government,'' Federal Expenditure Policy for
Economic Growth and Stability, Joint Economic Committee, Subcommittee on Fiscal
Policy, Washington, D.C., 1957.
29. OPTIMAL FEDERALISM: SORTING THE FUNCTIONS OF GOVERNMENT 853
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