Effect of tax and transfer reforms on local fiscal policy and household location and commuting decisions

This project analyses the impact of national reforms in taxation and grants on local fiscal policy and the response in households’ location and commuting decisions.

First, it examines how local governments change their tax and spend patterns in relation to reforms that affect local revenue, directly or indirectly. Afterwards, it analyzes how households respond to the local fiscal policy changes in terms of their location and commuting decisions. In doing so, the project aims to shed light on the interplay between national and local government policymaking and how it may advertently or inadvertently reshape the spatial distribution of households. The empirical strategy exploits reforms in the tax and grant system and uses data on their design, budget data from municipal accounts and data on households’ commuting or moving decisions.

Partner: University of Lugano

Responsible researcher: Sander Ramboer, [email protected], +358 259 519 506