Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/185799
Authors: 
Kuhlmey, Florian
Year of Publication: 
2017
Series/Report no.: 
WWZ Working Paper 2017/17
Abstract: 
This paper develops a model of local income tax competition with a progressive tax scheme and a built-in fiscal equalization scheme. Both aspects are central to policy makers: The progressivity for equity reasons, and the fiscal equalization to prevent a race to the bottom and to limit the degree of segregation of households according to income. The model is calibrated to the metropolitan area of Zurich (Switzerland), and policy evaluations reveal that a progressive tax scheme as the basis for local tax competition causes strong segregating forces that can only to some extent be compensated by the fiscal equalization scheme.
Subjects: 
tax competition
income taxation
fiscal equalization
progressive taxation
segregation
JEL: 
H3
H7
R1
R2
Document Type: 
Working Paper
Social Media Mentions:

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.