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• W3136502255 abstract "Traditional theory implies that fiscal federalism hinders redistribution and increases inequality. Decentralization might however improve predistribution. To obtain more precise empirical evidence on this relationship we introduce an interaction between tax decentralization and jurisdictional fragmentation and analyze its impact on pre- vs. after-tax inequality. The empirical strategy relies on the unique institutional setting and data consistency in Switzerland which allows to exploit cantonal variance since 1945. According to our findings, tax decentralization reduces income inequality as long as jurisdictional fragmentation remains limited. Significant effects in pre-tax income suggest an impact via the predistribution instead of the redistribution channel." @default.
• W3136502255 created "2021-03-29" @default.
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• W3136502255 date "2021-05-01" @default.
• W3136502255 modified "2023-10-17" @default.
• W3136502255 title "Fiscal federalism and income inequality: An empirical analysis for Switzerland" @default.
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• W3136502255 doi "https://doi.org/10.1016/j.jebo.2021.02.028" @default.
• W3136502255 hasPublicationYear "2021" @default.
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