Workplace choice, commuting costs, and wage taxation in urban and adjacent rural regions

Abstract

We thank the Editor Martin Andersson and an anonymous reviewer for their helpful comments on a previous version of this paper. In addition, Batabyal acknowledges financial support from the Gosnell endowment at RIT. The usual disclaimer applies.

Will the economic growth benefit public health? Health vulnerability, urbanization and COVID-19 in the USA

“…Economic development is a resource integration process that leads to urbanization and has effects on public health. It is generally agreed that the two components are inseparable: economic growth is increasingly advancing urbanization, and urban regions gain fast economic growth rates from individuals with advanced technology (Batabyal and Nijkamp 2020 ), and throughout history, regions with high population agglomeration have always been important economic growth centers (Islam 2020 ). However, there is no consistent answer in the literature on the interaction between health and economic development.…”

Interregional Demand for Workers and the Effects of Labor Income Taxation

“…Very recently, Batabyal and Nijkamp (2020) have combined aspects of the two literatures discussed in the preceding two paragraphs and have analyzed the effects of wage taxation in a linear aggregate economy consisting of an urban and an adjacent rural region. They show that when these two regions demand workers, inter alia, there are a number of circumstances in which the Nash equilibrium wage taxes are, in fact, not taxes but subsidies.…”

“…A limiting feature of the linear model analyzed by these researchers is that it consists of only two contiguous regions. Therefore, our principal goal in this paper is to extend the Batabyal and Nijkamp (2020) analysis by analyzing a model of labor income taxation in which there are > 2 regions and these regions are not necessarily contiguous to each other.…”

Interregional demand for workers and the effects of labour income taxation

“…Very recently, Batabyal and Nijkamp (2020) have combined aspects of the two literatures discussed in the preceding two paragraphs and have analysed the effects of wage taxation in a linear aggregate economy consisting of an urban and an adjacent rural region. They show that when these two regions demand workers, inter alia , there are a number of circumstances in which the Nash equilibrium wage taxes are, in fact, not taxes but subsidies.…”

“…A limiting feature of the linear model analysed by these researchers is that it consists of only two contiguous regions. Therefore, our principal goal in this paper is to extend the Batabyal and Nijkamp (2020) analysis by analysing a model of labour income taxation in which there are N > 2 regions and these N regions are not necessarily contiguous to each other.…”