Full Citation

Title: Commuting and Taxes: Theory, Empirics and Welfare Implications

Citation Type: Journal Article

Publication Year: 2018

ISBN:

ISSN: 0013-0133

DOI: 10.1111/ecoj.12550

NSFID:

PMCID:

PMID:

Abstract: We examine the effect of interstate differences in income taxes on commuting times. Our theoretical model introduces a border into a model of an urban area and shows that differences in average tax rates distort commuting patterns, but the sign of the effect depends on whether taxes are residence‐based or employment‐based. Empirically, tax differentials have a large effect on commuting times for affluent households and mobile households. We show that commuting times are a sufficient statistic to measure the spatial welfare effects of tax policy. The model and empirical design can be used by economists to study other policy differences.

Url: https://academic.oup.com/ej/article/128/616/2969-3007/5251688

User Submitted?: No

Authors: Agrawal, David R.; Hoyt, William H.

Periodical (Full): The Economic Journal

Issue: 616

Volume: 128

Pages: 2969-3007

Data Collections: IPUMS USA

Topics: Other, Poverty and Welfare

Countries: