Economics at your fingertips  

State Tax Differentials, Cross-Border Commuting, and Commuting Times in Multi-State Metropolitan Areas

David Agrawal () and William Hoyt ()

No 4852, CESifo Working Paper Series from CESifo Group Munich

Abstract: We examine the effects of differences in income tax rates on commuting times within multi-state MSAs. Our theoretical model introduces a border into a model of an urban area and shows that differences in average tax rates distort commute times and interstate commutes. Empirically examining multi-state MSAs allows us to exploit tax policy discontinuities while holding fixed other characteristics. We identify large effects on commuting times for affluent households and homeowners in MSAs in which taxes are based on the state of residence. We discuss how the model and empirical design can be used to study other policy differences.

Keywords: tax differentials; transportation; inter-jurisdictional competition; commuting (search for similar items in EconPapers)
JEL-codes: H20 H71 H73 R12 R28 R41 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed

Downloads: (external link) (application/pdf)

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:

Access Statistics for this paper

More papers in CESifo Working Paper Series from CESifo Group Munich Contact information at EDIRC.
Bibliographic data for series maintained by Klaus Wohlrabe ().

Page updated 2020-05-24
Handle: RePEc:ces:ceswps:_4852