How regional differences in taxes and public goods distort life cycle location choices

Laurence Kotlikoff, Bernd Raffelhüeschen () and Christian D. Hagist ()
Additional contact information
Bernd Raffelhüeschen: Freiburg University (Germany)
Christian D. Hagist: Freiburg University (Germany)

Hacienda Pública Española / Review of Public Economics, 2009, vol. 189, issue 2, 47-79

Abstract: This paper has considered an issue which only a few considered in the literature on harmonization of regional fiscal policies. The lack of attention paid to location distortions may reflect the sense that few individuals actually move to different states or countries because of differences in fiscal policies. This study confirms this view for the U.S.; for the U.S. economy as a whole the distortion of location choice appears to be small. However, for the four percent or so of Americans induced, by regional differences in fiscal policy, to relocate, the location distortion may range from .5 to 1.5 percent of the present value of their lifetime consumption – which is not small. In addition, the results suggest that location distortions rise geometrically with the size of regional fiscal differences.

Keywords: Life cycle location choices; regional tax distortions; regional public goods (search for similar items in EconPapers)
JEL-codes: H71 H72 H73 (search for similar items in EconPapers)
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.ief.es/comun/Descarga.cshtml?ruta=~/do ... tas/hpe/189_Art2.pdf (application/pdf)

Related works:
Working Paper: How Regional Differences in Taxes and Public Goods Distort Life Cycle Location Choices (1991)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hpe:journl:y:2009:v:189:i:2:p:47-79

Access Statistics for this article

More articles in Hacienda Pública Española / Review of Public Economics from IEF Contact information at EDIRC.
Bibliographic data for series maintained by Miguel Gómez de Antonio ().