Journal article


A Distortive Wage Tax and a Countervailing Commuting Subsidy


Publication Details
Author(s): Wrede M
Publisher: Blackwell Publishing Inc.
Publication year: 2009
Volume: 11
Pages range: 297–310
ISSN: 1467-9779
eISSN: 1097-3923
Language: English

Abstract

Within a second-best duocentric urban economics framework where labor income taxation distorts workplace choices on account of commuting costs, this paper studies a commuting subsidy, which distorts land use. It is shown that a commuting subsidy increases welfare if and only if it shifts labor supply from less to more productive business districts. © 2009 Wiley Periodicals, Inc.



Focus Area of Individual Faculties


How to cite
APA: Wrede, M. (2009). A Distortive Wage Tax and a Countervailing Commuting Subsidy. Journal of Public Economic Theory, 11, 297–310. https://dx.doi.org/10.1111/j.1467-9779.2009.01411.x

MLA: Wrede, Matthias. "A Distortive Wage Tax and a Countervailing Commuting Subsidy." Journal of Public Economic Theory 11 (2009): 297–310.

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