We study the tension between fiscal decentralization and progressive taxation. We present a multi-community model in which households differ in incomes and housing preferences and in which the local income tax rate is a function of an exogenous progressive tax schedule and an endogenous local...

This study investigates spatial segregation of the population in fiscally decentralized urban areas. The theoretical part proposes the progressivity of local income taxes as a new explanation for income segregation. The empirical part studies how income tax differentials across municipalities in...

This paper proposes measures to quantify the effective level and the effective progressivity of taxation in a fiscally decentralized country taking income sorting into account. Using data on the universe of Swiss taxpayers, we find that rich households effectively face significantly lower...

Swiss metropolitan areas are comprised of a system of communities with considerable fiscal autonomy. This study investigates how the income tax differentials across communities in an urban area affect the households` location decisions. Data from the urban agglomeration of Basel for the year...

Using unique Swedish micro data we examine the impact of local public services on community choice. The choice of community is modeled as a choice between a discrete set of alternatives. The US literature has produced conflicting evidence with respect to the importance of local public services....

In a recent paper, Homburg and Richter have argued that with free mobility of labor within a common labor market there is a need to harmonize and even consolidate pay-as-you-go financed national public pension systems to reach an efficient allocation of labor. We show that with free and...

In Japan, there is a shortage of long-term care facilities for the elderly and families are having difficulty supporting the elderly at home. Thus, the elderly in Japan often want to move to municipalities that have a greater availability in long-term care facilities. The purpose of this paper...

This paper studies how changes in welfare benefit levels affect welfare recipients' residential choices. Although several empirical studies have stressed that welfare policy may affect residential choices of welfare recipients, few studies have simultaneously taken into account that residential...