We examine whether the level of the income tax rate and the convexity of the income tax schedule affect job mobility, as measured by moving to a better job. While the predicted effect of the level of the tax rate is ambiguous, we predict that an increase in the convexity of the tax schedule decreases job search activity by taxing away some of the benefits of a successful job search. Using data ...

Local governments in the United States typically rely on several main sources of own-source revenues, including individual income taxes, general sales taxes, specific excise taxes, fees and charges, and local property taxes. Of these sources, the dominant is by far the property tax. According to the United States Census Bureau (http://www.census.gov/govs/estimate), local property taxes accounte...

This paper models voters’ preferences over central versus local education policies when there are private alternatives. Education is financed by income taxes and individuals are mobile between communities. Public education levels are chosen by majority vote. Contrary to conventional wisdom, centralisation may benefit the rich and poor, while the middle class prefer decentralised education. The ...

In this paper we examine the impact on the salaries of free agents in Major League Baseball of differences in state and local individual income taxes between major league cities, in an attempt to see if income taxes affect player salaries. Our basic specification suggests that each percentage point of an income tax raises free agent salaries by $21 to $24 thousand; other estimates indicate even...

We define and statistically estimate a nonlinear relationship between individual effective income tax rates and economic income for United States tax return data for tax years 1979-89. The relationship, which we call the effective tax function, has three parameters and was theoretically derived from the theory of equal sacrifice by Young (1988, 1990) and more generally by Berliant and Gouveia (...

This articles studies the optimal tax mix (taxes on income and commodities) under asymmetric information in a two-type model, when individuals make relative consumption comparisons. The model includes both positional and nonpositional goods, taking into account the fact that relative concerns matter for some but not for all commodities. We nd that in general the whole tax system is a ected by t...

For U.S. annual data that include WWII, the estimated multiplier for defense spending is 0.6-0.7 at the median unemployment rate (while holding fixed average marginal income-tax rates). There is some evidence that the spending multiplier rises with the extent of economic slack and reaches 1.0 when the unemployment rate is around 12%. We cannot estimate reliable multipliers for non-defense purch...

Estimating Labor Supply Responses and Welfare Participation: Using a Natural Experiment to Validate a Structural Labor Supply Model In this paper, we formulate and estimate an economic model of labor supply and welfare participation. The model is estimated on data on single men from Quebec drawn from the 1986 Canadian Census. Budget sets for each work-welfare combination – accounting for income...

OBJECTIVE To model the overall and income specific effect of a 20% tax on sugar sweetened drinks on the prevalence of overweight and obesity in the UK. DESIGN Econometric and comparative risk assessment modelling study. SETTING United Kingdom. POPULATION Adults aged 16 and over. INTERVENTION A 20% tax on sugar sweetened drinks. MAIN OUTCOME MEASURES The primary outcomes were the overa...