Decentralized taxation and commuting affect numerous dimensions of economic activity, but how they jointly shape residential decisions and spatial income sorting is still not well understood. We develop a structural model of individual location choices in a fiscally decentralized monocentric...

How freely can local jurisdictions change their taxes and spending? I propose an empirical test of the effective degree of municipal fiscal autonomy by studying fiscal adjustments to a permanent exogenous revenue shift. Based on a tax competition model where jurisdictions are are partially...

How freely can local jurisdictions change their taxes and spending? I propose an empirical test of the effective degree of municipal fiscal autonomy by studying fiscal adjustments to a permanent exogenous revenue shift. Based on a tax competition model where jurisdictions are are partially...

This paper investigates incentive effects of fiscal equalization on local tax rates. I propose three refinements to current empirical estimations of these incentive effects. I show that local policy makers may conceive of changes in equalization transfers as stemming from discrete rather than...

This paper investigates incentive effects of fiscal equalization on local tax rates. I propose two refinements to current empirical estimations of these incentive effects. I show that local policy makers may conceive of changes in equalization transfers as stemming from discrete rather than...