Culture and Taxes

• 成果类型: Article
• 署名作者: Eugster, Beatrix; Parchet, Raphael
• 署名单位: University of St Gallen; Centre for Economic Policy Research - UK; Universita della Svizzera Italiana
• 刊物名称: JOURNAL OF POLITICAL ECONOMY
• ISSN/ISSBN: 0022-3808
• DOI: 10.1086/700760
• 发表日期: 2019
• 页码: 296-337
• 关键词: mobility; location; COMPETITION; equilibria; schools; TRADE

摘要

We propose a difference-in-differences strategy to identify the existence of interjurisdictional tax competition. Our strategy rests on differences between desired tax levels determined by culture-specific preferences and equilibrium tax levels determined by fiscal externalities and by preferences. While preferences differ systematically between French-speaking and German-speaking Swiss municipalities, local income tax burdens exhibit smooth spatial gradients. To qualify the empirical evidence, we develop a theoretical model of strategic tax setting by local governments that anticipate the effects of taxes on the per capita income and the median hedonic income, two inextricable consequences of the sorting of heterogeneous individuals.