Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/191432
Authors: 
Feld, Lars P.
Frey, Christian
Schaltegger, Christoph A.
Schmid, Lukas A.
Year of Publication: 
2018
Series/Report no.: 
CESifo Working Paper No. 7407
Abstract: 
This paper analyzes the impact of fiscal federalism on income inequality and redistribution. Theoretically contradicting arguments ask for empirical evidence to obtain a better knowledge of this relationship. We rely on the institutional setting in Switzerland to study the issue empirically. According to our findings tax decentralization tends to reduce concentration in pre- and after-tax income without additional redistribution via progressive taxes. It is, however, crucial to consider the interdependence of decentralization and fragmentation as inequality decreasing effects of decentralization are counteracted by its interaction with fragmentation.
Subjects: 
federalism
decentralization
inequality
income concentration
top incomes
redistribution
Switzerland
JEL: 
D31
H23
H77
Document Type: 
Working Paper

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