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Commuting and Taxes

Theory, Empirics and Welfare Implications

Bibliographic Data

ID9706091
AuthorsDavid R Agrawal (0000-0001-8480-1849, University of Kentucky, corresponding author), William H Hoyt (University of Kentucky)
Year2018
Volume128
Issue616
Pages2969-3007
Publication date2018-12-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueThe Economic Journal (JOURNAL)
Journal identifiersISSN: 0013-0133 • E-ISSN: 1468-0297
PublisherOxford University Press (OUP) (PUBLISHER)
DOI10.1111/ecoj.12550
OpenAlexW3122620313
LanguageEN
Citations received7
References cited46

We examine the effect of interstate differences in income taxes on commuting times. Our theoretical model introduces a border into a model of an urban area and shows that differences in average tax rates distort commuting patterns, but the sign of the effect depends on whether taxes are residence‐based or employment‐based. Empirically, tax differentials have a large effect on commuting times for affluent households and mobile households. We show that commuting times are a sufficient statistic to measure the spatial welfare effects of tax policy. The model and empirical design can be used by economists to study other policy differences

Demographic economics · Econometrics · Economics · Public economics · Residence · Sign (mathematics · Statistic · Statistics · Tax policy · Tax reform · Welfare · Fiscal Policy and Economic Growth · Housing Market and Economics · Regional Economics and Spatial Analysis

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Unique citing works7
Citations per year0,78
Citation span2017 - 2025 (9)
Citation velocityrecent
Highly citedNo
Citation typesNeutral: 7

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