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Patriotism, Taxation and International MobilitySalmai QariWissenschaftszentrum Berlin für Sozialforschung (WZB); Max Planck Institute for Tax Law and Public Finance Kai A. KonradMax Planck Institute for Tax Law and Public Finance; Social Science Research Center Berlin (WZB); Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute for Economic Research); Institute for the Study of Labor (IZA) Benny GeysWissenschaftszentrum Berlin für Sozialforschung (WZB) - 'The Future of Fiscal Federalism' Research Project March 1, 2009 WZB Markets and Politics Working Paper No. SP II 2009-03 Abstract: For patriotic citizens, living in their native country is intrinsically preferable compared to living in the diaspora. In this paper, we analyze the implications of such a patriotic lock-in in a world with international migration and redistributive taxation. In a formal model of redistribution with international migration and fiscal competition we derive the main hypothesis: that countries with a more patriotic population should have higher redistributive taxes. Using ISSP survey data and combining them with OECD taxation data, we find robust evidence suggesting that a) higher patriotism is associated with higher tax burdens, and b) this relation is stronger for the upper-middle range of the income distribution.
Number of Pages in PDF File: 43 Keywords: patriotism, international mobility, taxation, redistribution, fiscal competition JEL Classification: H20, H73 working papers seriesDate posted: August 26, 2010Suggested CitationContact Information
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