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Place-Based Redistribution

delete2025-10-01
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PRE
AI
C
Cécile Gaubert *
P
Patrick Kline
D
Damián Vergara
D
Danny Yagan
DOI:10.1257/aer.20202067delete
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Abstract

Abstract

En 中文
We study optimal income taxation in a spatial equilibrium model with heterogeneous locational preferences, labor supply decisions, and competitive housing and labor markets. Expressions characterizing the optimal tax schedule in each community are provided that capture the fiscal externalities associated with migration and the effects of redistribution between households and landlords. Correlation between skill and locational preferences yields optimal transfers to poor areas, while sorting based on comparative advantage can motivate transfers in either direction. A calibration to areas targeted by the US Empowerment Zone program yields sizable optimal spatial transfers that are sensitive to assumed levels of migration responsiveness. (JEL H21, H23, H24, J24, J31, R23)
Keywords:
LOCAL ECONOMIC-DEVELOPMENT
OPTIMAL TAXATION
SUFFICIENT STATISTICS
INCOME TAXATION
POLICIES
EFFICIENCY
ELASTICITIES
INEQUALITY
JOBS

Journal

American Economic Review cover
American Economic Review
IF:
11.6
Papers:
5.0K
Citations:
7.5W

Organization

U
University of California Berkeley
Scholars:
3.5W
Papers: 2.8W
Citations: 11.3W
University of California System cover
University of California System
Scholars:
37.7W
Papers: 33.8W
Citations: 6.6K
Cited Papers

Cited Papers

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Has Income Segregation Really Increased? Bias and Bias Correction in Sample-Based Segregation Estimates
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errReardon, Sean F.; Bischoff, Kendra; Owens, Ann; Townsend, Joseph B.
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Understanding the City Size Wage Gap
err2011-08-19
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errBaum-Snow, Nathaniel; Pavan, Ronni
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Assessing the Incidence and Efficiency of a Prominent Place Based Policy
err2013-04-01
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errBusso, Matias; Gregory, Jesse; Kline, Patrick
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Optimal Labor Income Taxation
err2013-01-01
err0
PREAI
errThomas Piketty; Emmanuel Saez
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