TAXES, FEDERAL-GRANTS, LOCAL PUBLIC SPENDING, AND GROWTH

In a dynamic model with both private and local public capital accumula tion, this paper examines how federal and local income taxes, local co nsumption tax, and federal matching grants for local public consumptio n and local public investment affect the long-run equilibrium (equilib ria) of private consumption, private capital accumulation, local publi c consumption, and local public capital stock. (C) 1996 Academic Press , Inc.