Should Commuting Expenses Be Tax Deductible? A Welfare Analysis.

Journal article


Publication Details

Author(s): Wrede M
Journal: Journal of Urban Economics
Publisher: Elsevier
Publication year: 2001
Volume: 49
Pages range: 80-99
ISSN: 0094-1190
Language: English


Abstract


This paper asks whether or not commuting expenses should be tax deductible. In

order to answer this question, a simple multiregion model of Žim-.perfect household and

worker mobility is employed. The paper shows that deductibility is clearly inefficient

only if households are perfectly mobile and if households cannot choose their place of

work. If the region of work is not exogenously fixed, commuting expenses should be

deductible at more than 100%, even if households choose simultaneously the place of

work and the region of residence, and even if tax rates are not standardized within the

federation.



FAU Authors / FAU Editors

Wrede, Matthias Prof. Dr.
Lehrstuhl für Volkswirtschaftslehre, insbesondere Sozialpolitik


How to cite

APA:
Wrede, M. (2001). Should Commuting Expenses Be Tax Deductible? A Welfare Analysis. Journal of Urban Economics, 49, 80-99. https://dx.doi.org/10.1006/juec.2000.2185

MLA:
Wrede, Matthias. "Should Commuting Expenses Be Tax Deductible? A Welfare Analysis." Journal of Urban Economics 49 (2001): 80-99.

BibTeX: 

Last updated on 2018-16-06 at 08:10