Mobility and Redistributive Politics
AbstractThere is a widespread concern that a greater mobility of individuals can undermine any attempt to redistribute income at the local level. In this paper we derive the equilibrium level of redistribution when both the rich and the poor are mobile (although in different degrees) and when each jurisdiction chooses its redistributive policy by majority voting. This leads to a fundamental interaction whereby the policy choices of jurisdictions determine who they attract, and who they attract determines their policy choices. Our main findings are twofold. First, we show that a greater mobility of the poor can increase the equilibrium amount of redistribution. Second, we find that some jurisdictions can be stuck in equilibrium on the RwrongS side of their Laffer curve. The reason is that the poor are in a majority in these jurisdictions and they oppose to a potentially Pareto improving tax reduction because it would attract the rich and shift the majority.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by Exeter University, Department of Economics in its series Discussion Papers with number 9915.
Length: 20 pages
Date of creation: 1999
Date of revision:
Contact details of provider:
Postal: Streatham Court, Rennes Drive, Exeter EX4 4PU
Phone: (01392) 263218
Fax: (01392) 263242
Web page: http://business-school.exeter.ac.uk/about/departments/economics/
More information through EDIRC
SOCIAL CHOICE ; VOTING ; GOVERNMENT;
Other versions of this item:
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
- H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
- R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- FIGUIÈRES, Charles & HINDRIKS, Jean & MYLES, Gareth D., 2001. "Revenue sharing versus expenditure sharing," CORE Discussion Papers 2001015, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Alan Krause, 2007. "A Tax Reform Analysis of the Laffer Argument," Discussion Papers 07/10, Department of Economics, University of York.
- Alan Krause, 2009. "A general equilibrium analysis of the Laffer argument," Social Choice and Welfare, Springer, vol. 33(4), pages 601-615, November.
- HAMILTON, Jonathan & PESTIEAU, Pierre, 2002.
"Optimal income taxation and the ability distribution: implications for migration equilibria,"
CORE Discussion Papers
2002036, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Jonathan Hamilton & Pierre Pestieau, 2005. "Optimal Income Taxation and the Ability Distribution: Implications for Migration Equilibria," International Tax and Public Finance, Springer, vol. 12(1), pages 29-45, January.
- Haavio, Markus, 2005.
"Transboundary pollution and household mobility: Are they equivalent?,"
Journal of Environmental Economics and Management,
Elsevier, vol. 50(2), pages 252-275, September.
- Haavio, M., 2001. "Transboundary Pollution and Household Mobility: Are They Equivalent?," University of Helsinki, Department of Economics 500, Department of Economics.
- Guggenberger, Patrik & Kaul, Ashok & Kolmar, Martin, 2001.
"Efficiency Properties of Labor Taxation in a Spatial Model of Restricted Labor Mobility,"
IZA Discussion Papers
287, Institute for the Study of Labor (IZA).
- Guggenberger, Patrik & Kaul, Ashok & Kolmar, Martin, 2002. "Efficiency properties of labor taxation in a spatial model of restricted labor mobility," Regional Science and Urban Economics, Elsevier, vol. 32(4), pages 447-473, July.
- Glazer, Amihai & Kanniainen, Vesa & Poutvaara, Panu, 2005.
"Income Taxes, Property Values and Migration,"
IZA Discussion Papers
1889, Institute for the Study of Labor (IZA).
- Kurt Schmidheiny, 2005.
"Income Segregation from Local Income Taxation When Households Differ in Both Preferences and Incomes,"
Discussion Papers Series, Department of Economics, Tufts University
0509, Department of Economics, Tufts University.
- Schmidheiny, Kurt, 2006. "Income segregation from local income taxation when households differ in both preferences and incomes," Regional Science and Urban Economics, Elsevier, vol. 36(2), pages 270-299, March.
- M. Socorro Puy, 2004.
"Skill Distributions and the Compatibility between Mobility and Redistribution,"
Economic Working Papers at Centro de Estudios Andaluces
E2004/51, Centro de Estudios Andaluces.
- Puy, M. Socorro, 2007. "Skill distributions and the compatibility between mobility and redistribution," Regional Science and Urban Economics, Elsevier, vol. 37(3), pages 345-362, May.
- Kessler, Anke S. & Lulfesmann, Christoph, 2005. "Tiebout and redistribution in a model of residential and political choice," Journal of Public Economics, Elsevier, vol. 89(2-3), pages 501-528, February.
- John Deskins & Brian Hill, 2010. "State taxes and economic growth revisited: have distortions changed?," The Annals of Regional Science, Springer, vol. 44(2), pages 331-348, April.
- Lee, Woojin, 2004. "Mobility and tax competition when wages are endogenously determined," Economics Letters, Elsevier, vol. 83(3), pages 347-353, June.
- Cremer, Helmuth & Pestieau, Pierre, 2002. "Factor Mobility and Redistribution: A Survey," IDEI Working Papers 154, Institut d'Économie Industrielle (IDEI), Toulouse, revised 2003.
- Hakan Yilmazkuday, 2011. "Intranational Trade and Regional Tax Rates: A Welfare Analysis on the U.S. Economy," Working Papers 1106, Florida International University, Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Carlos Cortinhas).
If references are entirely missing, you can add them using this form.