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http://dspace.mediu.edu.my:8181/xmlui/handle/10419/19101| Title: | Artificial time inconsistency as a remedy for the race to the bottom |
| Keywords: | H25 ddc:330 tax competition federalism mobility social assistance time consistency Steuerwettbewerb Einkommensumverteilung Binnenwanderung Soziale Integration Zeitkonsistenz Theorie |
| Issue Date: | 16-Oct-2013 |
| Description: | A long-standing concern in the literature has been that household mobility implies a serious threat to the viability of redistributive taxation. This paper considers the effects of deferred integration of migrants into the redistributive system of the target country. In a model of symmetric regions, deferred integration introduces a time consistency problem into governments' tax plans which reduces a region's incentive to undercut other regions' tax rates and can bring tax competition to a halt. On the one hand, rich migrants cease to benefit from the lower tax rate in the current period. On the other hand, the region's promise of a continuing low rate in the future is not credible. We also explore the case where poor recipients of social assistance are mobile while the rich are immobile. |
| URI: | http://koha.mediu.edu.my:8181/xmlui/handle/10419/19101 |
| Other Identifiers: | http://hdl.handle.net/10419/19101 ppn:510009174 |
| Appears in Collections: | EconStor |
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