Culture and Taxes
Culture and Taxes
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DOI:
10.1086/700760
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发表时间:
2019-02-01
影响因子:
8.2
通讯作者:
Parchet, Raphael
中科院分区:
文献类型:
--
作者:
Eugster, Beatrix;Parchet, Raphael
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.