TY  - RPRT
        AU  - Giertz, Seth H.
AU  - Tosun, Mehmet S.
        TI  - Migration Elasticities, Fiscal Federalism and the Ability of States to Redistribute Income
        PY  - 2012/Aug/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 6798
        UR  - https://www.iza.org/publications/dp6798
        AB  - This paper develops a simulation model in order to examine the effectiveness of state attempts at redistribution under a variety of migration elasticity assumptions. Key outputs from the simulation include the impact of tax-induced migration on state revenues, excess burden, and fiscal externalities. With modest migration elasticities, the costs of state-level redistribution are substantial, but state action may still be preferred to a federal policy that is at odds with preferences of a state's citizens. At higher migration elasticities, the costs of state action can be tremendous. Overall excess burden is greater, but this is dominated by horizontal fiscal externalities. Horizontal fiscal externalities represent a cost to the state pursuing additional redistribution, but not a cost at the national level.
        KW  - excess burden
KW  - income redistribution
KW  - fiscal federalism
KW  - fiscal externalities
KW  - deadweight loss
        ER  -