期刊名称：CORE Discussion Papers / Center for Operations Research and Econometrics (UCL), Louvain
出版年度：2011
卷号：2011
期号：1
出版社：Center for Operations Research and Econometrics (UCL), Louvain
摘要：We analyze the effects, on nonredistributive taxation and on migrations, of wage
differentials existing between two countries (regions) differing by the size of their
population. Residents, otherwise identical, are heterogeneous because they incur
different migration costs. Each resident compares the post - tax amount of money at
home with the one obtained abroad, including the cost of migration. The
government in each country maximizes the tax product in order to provide the
largest possible amount of public good. We first assume that the income of citizens
are identical across countries. Then, we assume that wages differ from one country
to the other. We prove the existence of an equilibrium for any configuration of
wage and any different relative size of the countries (regions). Then, we compute
and characterize the equilibrium for any set of parameters, size and wage
differential.
