Blumkin, Tomer; Sadka, Efraim; Shem-Tov, Yotam - CESifo - 2011
In this paper we employ a tax-competition model to demonstrate that in the presence of migration the re …-distributive advantage of a non-linear income tax system over a linear (flat) one is significantly mitigated relative to the autarky (no-migration …) equilibrium. When migration threats are sufficiently strong, a coordinated shift from a non-linear (prima-facie superior) system …