IDEAS home Printed from https://ideas.repec.org/a/kap/atlecj/v32y2004i3p191-200.html
   My bibliography  Save this article

Regional impact of commuter wage taxes

Author

Listed:
  • Paul Hettler

Abstract

This paper presents a model of interurban and intraurban location that is used to consider the impact of wage taxes on housing and labor markets in a metropolitan area. The focus of the paper is to examine the differences in the regional impact of commuter wage taxes (source-based wage taxes) and residents-only wage taxes (residence-based wage taxes). The model illustrates that suburban land rent and wages can be affected in equilibrium by central city policies and that the mix of public goods (that is, whether they benefit households or firms) as well as those who bear the burden of financing them has implications regarding land values and shifts in relative population and production. Understanding such linkages is important in the creation and analysis of regional economic policy. Copyright International Atlantic Economic Society 2004

Suggested Citation

  • Paul Hettler, 2004. "Regional impact of commuter wage taxes," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 32(3), pages 191-200, September.
    • Handle: RePEc:kap:atlecj:v:32:y:2004:i:3:p:191-200
    DOI: 10.1007/BF02299437
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/BF02299437
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/BF02299437?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Braid, Ralph M., 2002. "The Spatial Effects of Wage or Property Tax Differentials, and Local Government Choice between Tax Instruments," Journal of Urban Economics, Elsevier, vol. 51(3), pages 429-445, May.
    2. Joe P. Mattey, 1996. "Evolution of the quality of life in the U.S," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue sep13.
    3. Sasaki, Komei, 1991. "Interjurisdictional Commuting and Local Public Goods," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 25(4), pages 271-285.
    4. Gyourko, Joseph & Tracy, Joseph, 1989. "The Importance of Local Fiscal Conditions in Analyzing Local Labor Markets," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1208-1231, October.
    5. Ladd, Helen F. & Bradbury, Katharine L., 1988. "City Taxes and Property Tax Bases," National Tax Journal, National Tax Association, vol. 41(4), pages 503-23, December.
    6. de Bartolome, Charles A. M. & Ross, Stephen L., 2003. "Equilibria with local governments and commuting: income sorting vs income mixing," Journal of Urban Economics, Elsevier, vol. 54(1), pages 1-20, July.
    7. Ladd, Helen F. & Bradbury, Katharine L., 1988. "City Taxes and Property Tax Bases," National Tax Journal, National Tax Association;National Tax Journal, vol. 41(4), pages 503-523, December.
    8. Haughwout, Andrew F., 1997. "Central city infrastructure investment and suburban house values," Regional Science and Urban Economics, Elsevier, vol. 27(2), pages 199-215, April.
    9. Hoyt, William H., 1992. "Market power of large cities and policy differences in metropolitan areas," Regional Science and Urban Economics, Elsevier, vol. 22(4), pages 539-558, November.
    10. Timothy, Darren & Wheaton, William C., 2001. "Intra-Urban Wage Variation, Employment Location, and Commuting Times," Journal of Urban Economics, Elsevier, vol. 50(2), pages 338-366, September.
    11. Blomquist, Glenn C & Berger, Mark C & Hoehn, John P, 1988. "New Estimates of Quality of Life in Urban Areas," American Economic Review, American Economic Association, vol. 78(1), pages 89-107, March.
    12. Börje Johansson & Johan Klaesson & Michael Olsson, 2003. "Commuters’ non-linear response to time distances," Journal of Geographical Systems, Springer, vol. 5(3), pages 315-329, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Paul Hettler, 2001. "Spillover effects of local fiscal policy," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 29(4), pages 406-419, December.
    2. Kim, Dongsoo & Liu, Feng & Yezer, Anthony, 2009. "Do inter-city differences in intra-city wage differentials have any interesting implications?," Journal of Urban Economics, Elsevier, vol. 66(3), pages 203-209, November.
    3. Wouter Vermeulen & J. van Ommeren, 2006. "Compensation of regional unemployment in housing markets," CPB Discussion Paper 57, CPB Netherlands Bureau for Economic Policy Analysis.
    4. Gaigné, Carl & Riou, Stéphane & Thisse, Jacques-François, 2016. "How to make the metropolitan area work? Neither big government, nor laissez-faire," Journal of Public Economics, Elsevier, vol. 134(C), pages 100-113.
    5. Hongbo Wang, 2016. "The Texas economic model, miracle or mirage? A spatial hedonic analysis," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 56(2), pages 393-417, March.
    6. Albouy, David & Lue, Bert, 2015. "Driving to opportunity: Local rents, wages, commuting, and sub-metropolitan quality of life," Journal of Urban Economics, Elsevier, vol. 89(C), pages 74-92.
    7. Carlsen, Fredrik & Langset, Bjørg & Rattsø, Jørn & Stambøl, Lasse, 2009. "Using survey data to study capitalization of local public services," Regional Science and Urban Economics, Elsevier, vol. 39(6), pages 688-695, November.
    8. Rappaport, Jordan, 2004. "Why are population flows so persistent?," Journal of Urban Economics, Elsevier, vol. 56(3), pages 554-580, November.
    9. Nuria Boch Roca & Marta Espasa & Daniel Montolio, 2014. "Should Large Spanish Municipalities Be Financially Compensated? Costs and Benefits of Being a Capital/Central Municipality," Hacienda Pública Española / Review of Public Economics, IEF, vol. 211(4), pages 67-91, December.
    10. David E. Clark & Thomas A. Knapp, 1995. "The Hedonic Price Structure Of Faculty Compensation At U.S. Colleges And Universities," The Review of Regional Studies, Southern Regional Science Association, vol. 25(2), pages 117-141, Fall.
    11. Nathaniel Harris & Chuanhao Lin, 2024. "Planning Regulations: Two Tests to Determine if We Have Confused the Cure With the Disease," Working Papers 2024-02, The George Washington University, Institute for International Economic Policy.
    12. Robert Novy-Marx & Joshua D. Rauh, 2009. "The Liabilities and Risks of State-Sponsored Pension Plans," Journal of Economic Perspectives, American Economic Association, vol. 23(4), pages 191-210, Fall.
    13. Jordan Rappaport, 2004. "A simple model of city crowdedness," Research Working Paper RWP 04-12, Federal Reserve Bank of Kansas City.
    14. John Merrifield & Yong Bao, 2007. "Residential Property Taxation: Is Periodic Reassessment worth it?," Working Papers 0003, College of Business, University of Texas at San Antonio.
    15. Donald Vandegrift & Amanda Lockshiss & Michael Lahr, 2012. "Town versus Gown: The Effect of a College on Housing Prices and the Tax Base," Growth and Change, Wiley Blackwell, vol. 43(2), pages 304-334, June.
    16. Emilio Colombo & Alessandra Michelangeli & Luca Stanca, 2014. "La Dolce Vita : Hedonic Estimates of Quality of Life in Italian Cities," Regional Studies, Taylor & Francis Journals, vol. 48(8), pages 1404-1418, August.
    17. Jordan Rappaport, 2006. "Consumption amenities and city crowdedness," Research Working Paper RWP 06-10, Federal Reserve Bank of Kansas City.
    18. David Albouy, 2008. "Are Big Cities Bad Places to Live? Estimating Quality of Life across Metropolitan Areas," NBER Working Papers 14472, National Bureau of Economic Research, Inc.
    19. David E. Clark, 2004. "Amenity Valuation, Incomplete Compensation and Migration," Working Papers and Research 0402, Marquette University, Center for Global and Economic Studies and Department of Economics.
    20. Haughwout, Andrew F., 2002. "Public infrastructure investments, productivity and welfare in fixed geographic areas," Journal of Public Economics, Elsevier, vol. 83(3), pages 405-428, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:atlecj:v:32:y:2004:i:3:p:191-200. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.