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Millionaires on the Run? Taxation of the Rich and Induced Mobility: A Literature Review

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  • FERNANDO RODRIGO SAUCO

    (IEDIS, University of Zaragoza)

Abstract

The main goal of this paper is to evaluate, from an economics perspective, the growing literature on the possible tax-induced residential mobility of high-income and high-net-worth individuals. This literature is dominated by the estimation of one parameter: migration elasticity in response to changes in net-of-tax income. The considerable heterogeneity of estimations of this elasticity warns against drawing any overall conclusions without considering and evaluating the institutional and economic conditions and methodological options influencing each specific estimation. While keeping this caveat in mind, we offer some final recommendations for public decision-makers who hope to offer differentiating tax policies targeting taxpayers in the top wealth and income bracket or favouring specific professional profiles.

Suggested Citation

  • Fernando Rodrigo Sauco, 2025. "Millionaires on the Run? Taxation of the Rich and Induced Mobility: A Literature Review," Hacienda Pública Española / Review of Public Economics, IEF, vol. 253(2), pages 91-127, June.
    • Handle: RePEc:hpe:journl:y:2025:v:253:i:2:p:91-127
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects

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