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preferences for redistribution. Second we demonstrate that social-policy does not have to be centralized in order to implement the …
Persistent link: https://www.econbiz.de/10009491059
We set up a simple political economy model where economic integration raises the profitability of multinational firms. In this setting redistributive taxation may rise following economic integration, if the effects of the widened income gap dominate the higher excess burden of the tax.
Persistent link: https://www.econbiz.de/10010439374
Many theoretical models show that redistribution causes low growth or capital outflows even though empirically … redistribution and growth are often found to be positively associated across countries. This paper argues that tax competition and … the danger of capital outflows leads optimizing governments to pursue high growth, no redistribution policies in …
Persistent link: https://www.econbiz.de/10002510165
that increased mobility of production factors will pose a severe threat to redistribution possibility is less acute than it …
Persistent link: https://www.econbiz.de/10011527348
I propose a model of income redistribution in an open-economy environment. The world consists of a finite number of … income. While tax competition limits the extent to which redistribution is possible-as compared to the closed-economy outcome …
Persistent link: https://www.econbiz.de/10010528950
Mobility of highly-skilled workers affects and is affected by labor market conditions, taxes, and other policies. This paper documents the demographic and fiscal importance of international migration, especially in aging societies, reviews the efficiency and distributional effects of mobility,...
Persistent link: https://www.econbiz.de/10010354844
We consider taxation by a Leviathan government and by a utilitarian government in the presence of heterogeneous locations within a country, when migration from one country to another is and is not possible. In a closed economy, a utilitarian government may transfer income from the poor to the...
Persistent link: https://www.econbiz.de/10011511078
The traditional normative literature on fiscal federalism argues that redistributive policies should be centralized in order to avoid welfare- or tax-induced migration. However, recent evidence shows that even in a setup where the progressivity of the income tax schedule is centralized to an...
Persistent link: https://www.econbiz.de/10012421200
Persistent link: https://www.econbiz.de/10014233435
This paper provides empirical evidence for interdependence of jurisdictions' tax policies. We study tax policy interdependence between municipalities in the economically integrated European Metropolitan Area Frankfurt/Rhein-Main, that spreads across two German states, Hesse, and...
Persistent link: https://www.econbiz.de/10011348398