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Author:Epple, D.
Romer, T.
Title:Mobility and redistribution
Journal:Journal of Political Economy
1991 : AUG, VOL. 99:4, p. 828-858
Index terms:LABOUR MOBILITY
LOCAL GOVERNMENT
MIGRATION
TAXATION
Language:eng
Abstract:The ability of individuals to move freely from one jurisdiction (J) to another is generally seen as a constraint on the amount of redistribution (R) that each J within a system of governments can undertake. This proposition is examined by developing a positive analysis of income R by local governments in a federal system. The question is: how much R occurs when only local governments can have tax/transfer instruments, individuals can move freely among J-s, and voters in each J are fully aware of the migration effects of redistributive policies. Numerical computations indicate that the proportion of residents who are renters is a major factor affecting the local choice of level of R.
SCIMA record nr: 100374
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