@techreport{Hodler2005fiscal,
abstract = {We study the tension between fiscal decentralization and progressive taxation. We present a
multi-community model in which households differ in incomes and housing preferences and
in which the local income tax rate is a function of an exogenous progressive tax schedule and
an endogenous local tax shifter. The progressivity of the tax schedule induces a self-sorting
process that results in substantial though imperfect income sorting. The actual tax structure is
thus less progressive than the exogenous tax schedule. Empirical evidence from the largest
Swiss metropolitan area supports the predictions of our model.},
author = {Roland Hodler and Kurt Schmidheiny},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {R23; H73; 330; progressive taxation; fiscal decentralization; income segregation; Steuerprogression; Finanzf\"{o}deralismus; Gemeindesteuer; Regionale Einkommensverteilung; Sch\"{a}tzung; Theorie; Schweiz},
language = {eng},
number = {1575},
title = {How fiscal decentralization flattens progressive taxes},
type = {CESifo working papers},
url = {http://hdl.handle.net/10419/19039},
year = {2005}
}
