We offer a new explanation for why taxes have become less redistributive in many countries while the concentration of incomes has increased. Our argument is based on prevalence incentive contracts modern economies, conjunction with increased product market integration. Globalization widens spread project returns and makes contract choices more responsive to tax changes. This can result lower op...

This paper analyzes redistribution by municipalities in a metropolitan area using the classical model of residential land use in a monocentric city. Crossing bid rent curves lead to spatial segregation of household types which might shield high-income households from redistribution by municipalities. If rich households live farer away from the central business district than poor households, the...