on the theory of state and local public finance is the seminal paper by Charles Tiebout (1956). Tiebout constructed a multijurisdictional model in which independent local governments offer a wide variety of expenditure and tax policies, and perfectly mobile consumers reveal their preferences for local public goods through their choice of residential community. He argued that, under such circumstances, local public service provision would be efficient. The Tiebout model has formed the basis of a vast number of subsequent articles in the state and local public finance literature and has also been very influential in urban and regional economics. The efficiency properties of various Tiebout-type models of local public good provision have been examined, and the role of politics in these models has been debated at length in this literature. Of more direct relevance to this paper, however, is the fact that although Tiebout had little to say directly about taxation (simply assuming the existence of head taxes), subsequent analyses have used adaptations of this model to examine the effects of local head taxes, land taxes, and property taxes. It is the literature on the efficiency and distributional effects of alternative local taxes that is the subject of this survey. 1

A geometrical analysis, 540. — A numerical analysis, 547. — A model with two types of labor, 558. — Monopoly elements, 559. — Concluding remarks, 560.

This article presents empirical estimates of racial discrimination in the New Haven, Connecticut, housing market. The results are based on over 200 rental units for which there is comprehensive information on the characteristics of the dwellings. Using multiple-regression techniques, we estimate that blacks and whites do pay different amounts for equivalent units. For black female-headed households the markup relative to white males is 16 percent; for black male-headed households, 7.5 percent. Also the work indicates that rents for whites in boundary (integrated) areas are about 7 percent lower than for black households in these areas.