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tax schedules are not allowed to differ across regions, productivity-enhancing inter-regional migration exerts a downward …-(low-)productivity regions should be corrected downwards (upwards) relative to the benchmark without migration. Simulations of the productivity … differences between metropolitan and other areas of the US indicate that migration affects the optimal tax-transfer schedule more …
Persistent link: https://www.econbiz.de/10012208399
Combining an intensive labor supply margin with an extensive, productivity-enhancing migration margin, we determine how … regional inequality and labor mobility shape optimal redistribution. We propose the use of delayed optimal-control techniques …-enhancing interregional migration exerts a downward pressure on marginal tax rates. Allowing for regionally differentiated taxation with …
Persistent link: https://www.econbiz.de/10012385441
, productivity-enhancing migration margin, we determine how regional inequality and labor mobility affect optimal redistribution …Regional productivity differences provide scope for productivity-enhancing labor mobility. Redistribution reduces … are reduced by several percentage points if productivity enhancing migration is taken into account. Additionally, we study …
Persistent link: https://www.econbiz.de/10010480829
We analyze the optimal regional pattern of public employment in an information-constrained second-best redistribution …
Persistent link: https://www.econbiz.de/10010282132
The Atkinson-Stiglitz Theorem states that if labor is weakly separable from goods in household utility functions, differential commodity taxation should not be not part of an optimal redistributive tax system. This Theorem, which is arguable the most policy-relevant result to come out of the...
Persistent link: https://www.econbiz.de/10011940630
redistribution. Within a Mirrleesian economy with earnings, consumption and retirement savings, we derive a novel formula for optimal …
Persistent link: https://www.econbiz.de/10012888653
The Ramsey optimal taxation theory implies that the tax rate on capital income should be zero in the long run. This …
Persistent link: https://www.econbiz.de/10010281227
The present paper studies a multi-jurisdictional framework, in which, from a federal perspective, educational subsidies turn out to be efficiency enhancing. However, in the presence of mobile high-skilled labor, local jurisdictions might try to free-ride on other regions' education policies and...
Persistent link: https://www.econbiz.de/10010270836
The paper presents new results on within-country regional inequality in per capita income for 36 countries during 1995-2005; focusing on Europe but with some non-European countries included for comparison. In 23 of the 36 countries there was a significant increase in regional inequality during the...
Persistent link: https://www.econbiz.de/10011430814
Implementation of the European internal market and East-West integration has been accompanied by a dramatic change in the spatial distribution of economic activity, with higher growth west and east of a longitude degree through Germany and Italy. In the east, income growth has been accompanied...
Persistent link: https://www.econbiz.de/10011430821