Economics at your fingertips  

Devolving fiscal policy: migration and tax yields

James Foreman-Peck () and Peng Zhou ()

Regional Studies, 2020, vol. 54, issue 3, 308-317

Abstract: Devolution of taxes to sub-national jurisdictions could reduce expected tax revenue if some households move to lower tax regimes, constraining devolved government policy. This paper develops an indirect approach to establishing lower bound revenue impacts of possible devolved tax changes by allowing for tax-induced migration. The results suggest that limited tax devolution, such as conferred on Wales by the UK 2014 Act, could trigger substantial tax revenue and gross value added (GVA) spillovers from migration on the devolved economy. The prospect may have, and perhaps should have, discouraged decentralization of taxation to the same extent as decentralization of spending in the Organisation for Economic Co-operation and Development (OECD).

Date: 2020
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (text/html)
Access to full text is restricted to subscribers.

Related works:
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:

Ordering information: This journal article can be ordered from

DOI: 10.1080/00343404.2019.1602256

Access Statistics for this article

Regional Studies is currently edited by Ivan Turok

More articles in Regional Studies from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().

Page updated 2020-09-16
Handle: RePEc:taf:regstd:v:54:y:2020:i:3:p:308-317