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Local Fiscal Policy and Retiree Migration: Evidence from the Health and Retirement Study

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Abstract

We use the 1992 to 2000 waves of HRS and town-level fiscal data from the Census of Governments, to examine whether moves by households near retirement age are motivated by local fiscal policy. The data show some evidence that movers lower their fiscal burden. Households that move across states the first time after their children have reached adulthood reduce their property tax liability by an average of $115. However, there is a great deal of heterogeneity across different types of movers. It is clear that while fiscal policy may factor into the move decision, it is just one of many variables upon which location choice by retirees is based.

Suggested Citation

  • Purvi Sevak & Martin Farnham, 2002. "Local Fiscal Policy and Retiree Migration: Evidence from the Health and Retirement Study," Economics Working Paper Archive at Hunter College 02/7, Hunter College Department of Economics.
  • Handle: RePEc:htr:hcecon:02/7
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    File URL: http://econ.hunter.cuny.edu/wp-content/uploads/sites/6/RePEc/papers/HunterEconWP02-7.pdf
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    1. Poterba, James M, 1998. "Demographic Change, Intergenerational Linkages, and Public Education," American Economic Review, American Economic Association, vol. 88(2), pages 315-320, May.
    2. Daniel McFadden, 1977. "Modelling the Choice of Residential Location," Cowles Foundation Discussion Papers 477, Cowles Foundation for Research in Economics, Yale University.
    3. Samuel Preston, 1984. "Children and the elderly: Divergent paths for America’s dependents," Demography, Springer;Population Association of America (PAA), vol. 21(4), pages 435-457, November.
    4. Conway, Karen Smith & Houtenville, Andrew J, 1998. "Do the Elderly "Vote with Their Feet"?," Public Choice, Springer, vol. 97(4), pages 663-685, December.
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    Cited by:

    1. Mehmet Serkan Tosun & Claudia Williamson & Pavel Yakovlev, 2007. "Population Aging, Elderly Migration and Education Spending: Intergenerational Conflict Revisited," Working Papers 07-003, University of Nevada, Reno, Department of Economics;University of Nevada, Reno , Department of Resource Economics.

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    Keywords

    Local Public Finance;

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