How Regional Differences in Taxes and Public Goods Distort Life Cycle Location Choices

Kotlikoff, Laurence J.; Raffelhüschen, Bernd; Hagist, Christian

doi:10.3386/w3598

Cited by 3 publications

(2 citation statements)

References 23 publications

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“…However, in the face of tax differences across the provinces, which currently range from a low of 39% for Alberta to a high of 48.6% in Newfoundland, this still implies relatively low labour mobility. Similarly, for the U.S., evidence by Kotlikoff and Raffelhueschen (1991) indicates that 'regional fiscal differences play an important role in the location choices of three to four percent of Americans.' Whether this indication of relative labour immobility is sufficient to offset the Barro argument or not is an empirical question.…”

Section: Factors Affecting the Yield Spreadmentioning

confidence: 99%

What drives provincial‐Canada yield spreads?

Booth

Georgopoulos

Hejazi

2007

Canadian J of Economics

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Abstract. Although recent research has led to a deeper understanding of the factors determining yields on long‐term Canada bonds, there has been little corresponding work on provincial bonds. By using a carefully constructed new data set, we establish two important results. First, provincial fiscal positions (debt and deficits) are an important factor in determining yield spreads between provincial and Canada bonds. Second, we show that provincial bonds are a substitute for corporate debt, in that during recessionary ‘flights to quality’ their yields react like those on corporate bonds.

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Section: Factors Affecting the Yield Spreadmentioning

confidence: 99%

What drives provincial‐Canada yield spreads?

Booth

Georgopoulos

Hejazi

2007

Canadian J of Economics

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“…On the other hand, while the land tax Nash equilibrium under decentralization yields positive provision, intergenerational good is underprovided relative to the e¢cient level unless the 2 It is also worth calling the reader's attention to the literature of dynamic Tiebout models without DLPG or capitalization. See especially Kotliko¤ and Ra¤elhueschen (1991), Glomm and Laguno¤ (1999), Benabou (1996), and Brueckner (1997), and more recently Chen, Peng and Wang (2009) and Epple, Romano and Sieg (2012). Schultz and Sjöström (2001) treat a two period, two jurisdiction model with public debt and free mobility.…”

Section: Introductionmentioning

confidence: 99%

Capitalization, decentralization, and intergenerational spillovers in a Tiebout economy with a durable public good

2017

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We consider an overlapping generations model with a Durable Local Public Good (DLPG). We establish a Tiebout Theorem (equilibrium exists and is first best) as well as a Second Welfare Theorem in this dynamic DLPG economy. We de...ne conditions under which local provision of durable public goods results in the full internalization of the intergenerational spillovers that durability entails. In contrast, when durable public goods are provided by the national government, internalization does not take place and underprovision of public goods results. This sets up an institutional tradeoff between national and local provision of public goods that balances the relative strength of intergenerational and interjurisdictional spillovers.

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Taxes and Economic Growth

Barro¹

2021

Prospects for Economic Growth in the United States

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How Regional Differences in Taxes and Public Goods Distort Life Cycle Location Choices

Cited by 3 publications

References 23 publications

What drives provincial‐Canada yield spreads?

What drives provincial‐Canada yield spreads?

Capitalization, decentralization, and intergenerational spillovers in a Tiebout economy with a durable public good

Taxes and Economic Growth

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