Interstate mobility may limit states' ability to choose their desired tax policies. The forces of agglomeration, however, may allow states more leeway in setting tax rates. Moreover, mobility and agglomeration effects are not uniform for all individuals within a state, and may vary significantly...

Interstate mobility may limit states' ability to choose their desired tax rates. The forces of agglomeration, however, may allow states more leeway in setting tax rates. Mobility and agglomeration effects, however, are not uniform for all individuals within a state, and may vary significantly...