Tax competition and income sorting: Evidence from the Zurich metropolitan area

Arbeitspapier

In this paper, we provide empirical evidence for the influence of income taxes on the choice of residence of taxpayers at the local level. The fact that Swiss communities can individually set tax multipliers thereby shifting the progressive tax scheme which is fixed at the cantonal (state) level enables us to study the effect of differences in income taxation on individuals' choice of location within an economically and culturally homogeneous region. Using panel IV regressions covering the years 1991-2003 and 171 communities in the Swiss canton of Zurich and spatial error regressions for the 171 communities in 2003, we find substantial evidence for income sorting.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: KOF Working Papers ; No. 240

Classification and Topics

• Classification: Wirtschaft ; State and Local Taxation, Subsidies, and Revenue ; State and Local Government; Intergovernmental Relations: Interjurisdictional Differentials and Their Effects ; Regional Government Analysis: General
• Subject: tax competition ; fiscal federalism ; income segregation ; income tax ; Einkommensteuer ; Steuerwettbewerb ; Wohnstandort ; Segregation ; Regionale Einkommensverteilung ; Schweiz

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Schaltegger, Christoph A. ; Somogyi, Frank ; Sturm, Jan-Egbert
• Event: Veröffentlichung
• (who): ETH Zurich, KOF Swiss Economic Institute
• (where): Zurich
• (when): 2009

Further information

• DOI: doi:10.3929/ethz-a-005899651
• Handle: http://hdl.handle.net/10419/50447
• Last update: 10.03.2025, 11:41 AM CET