Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/62497
Authors: 
Giertz, Seth H.
Tosun, Mehmet Serkan
Year of Publication: 
2012
Series/Report no.: 
Discussion Paper series, Forschungsinstitut zur Zukunft der Arbeit 6798
Abstract: 
This paper develops a simulation model in order to examine the effectiveness of state attempts at redistribution under a variety of migration elasticity assumptions. Key outputs from the simulation include the impact of tax-induced migration on state revenues, excess burden, and fiscal externalities. With modest migration elasticities, the costs of state-level redistribution are substantial, but state action may still be preferred to a federal policy that is at odds with preferences of a state's citizens. At higher migration elasticities, the costs of state action can be tremendous. Overall excess burden is greater, but this is dominated by horizontal fiscal externalities. Horizontal fiscal externalities represent a cost to the state pursuing additional redistribution, but not a cost at the national level.
Subjects: 
fiscal federalism
income redistribution
excess burden
deadweight loss
fiscal externalities
JEL: 
H21
H23
H71
Document Type: 
Working Paper

Files in This Item:
File
Size
796.16 kB





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